Walmart Pays $100M to Spark Drivers After FTC Settlement

Thousands of gig workers are getting justice and a check after federal regulators stepped in to protect their paychecks. Walmart has agreed to pay $100 million to settle charges that it misled Spark Driver delivery workers about their earnings and tips.

The Federal Trade Commission, along with 12 states, found that Walmart had been deceiving drivers since 2021. Drivers were promised certain base pay and tips upfront, but the company quietly changed the amounts after workers accepted jobs.

The problems ran deep. When customers placed large orders, Walmart would split them between multiple drivers but also split the tip without telling anyone. Customers thought one driver was getting their full tip, and drivers expected the full amount shown when they accepted the job.

In some cases, Walmart removed tips from batch orders entirely without warning drivers. Other times, the company promised tips that were never collected from customers, leaving drivers empty handed. Walmart even reduced base pay after drivers had already accepted offers.

The settlement does more than compensate workers for past losses. Walmart must now verify that drivers receive exactly what they're promised before starting work. The company is banned from changing pay, incentives, or tips after making an initial offer, unless a driver fails to complete the delivery or a customer cancels.

The Ripple Effect

This victory extends far beyond Walmart's delivery platform. The settlement sends a clear message to the entire gig economy that workers deserve transparent, honest pay practices. With millions of Americans relying on gig work for income, these protections help ensure labor markets work fairly for everyone.

The new requirements also protect customers who want their tips to reach the people doing the work. When shoppers add gratuity, they can now trust it's actually going to their driver.

Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection, emphasized that truthful earnings information is essential for healthy labor markets. The settlement represents a commitment to protecting American workers and ensuring they can make informed decisions about their work.

Thousands of Spark Drivers will receive compensation for wages they earned but never saw, and future workers will have stronger protections from day one.