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Texas AG Secures $13 Million Settlement from Walmart Over Delivery Driver Compensation and Tips

Walmart, Inc.July 6, 2026Texas Attorney General

Penalty Amount

$13,000,000

Summary

Texas Attorney General Ken Paxton secured a settlement with Walmart over deceptive practices in its Spark Driver program. Walmart misrepresented driver pay, including failing to pass on customer tips and altering base pay after drivers accepted offers. The $13 million settlement provides direct payments to affected Texas drivers and requires Walmart to implement honest compensation practices.

Remedy

Walmart must pay over $13 million, with half going directly to affected Texas delivery drivers. The company is also required to implement transparent and accurate compensation practices, and the Texas OAG will continue to review records and marketing materials to ensure compliance.

Monetary PenaltyConsumer RefundsInjunctionReporting Requirements

Contract Impact

In-house legal teams should review independent contractor agreements and vendor agreements with gig economy platforms, focusing on compensation clauses, tip distribution policies, and marketing representations. Key clauses to examine include: how base pay is calculated and whether it can be altered after acceptance, how customer tips are passed through to drivers, and the accuracy of incentive earnings descriptions. Teams should also audit marketing materials and driver-facing communications for consistency with contractual promises, and ensure there are clear audit rights and reporting requirements to verify compliance with compensation commitments.

Contract Search Terms

driver compensationtip distributionbase pay alterationincentive earningsmarketing representationsdelivery service agreementindependent contractor agreementpay transparencydeceptive trade practicescompensation disclosure

Laws Cited

Texas Deceptive Trade Practices Act

Violation Types

Entity Details

Entity

Walmart, Inc.

Industry

Retail

Official Sources

Source Evidence

Entity Name
"Walmart, Inc."
Fine Amount
"over $13 million"
Violation Types
"Walmart made false representations to drivers regarding their pay, including pre-tips selected by customers at checkout, base pay, and special incentive earnings opportunities"
Remedy Types
"Half of this amount has been paid out directly to delivery drivers affected by Walmart’s deceptive marketing and practices"
Remedy Summary
"The settlement also requires that Walmart takes measures to ensure that drivers get paid fairly and in line with what is being marketed to them"

Related Enforcement Actions

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The FTC and 11 states settled with Walmart for $100 million over deceptive earnings claims in its Spark Driver gig worker app, where drivers were misled about base pay, tips, and incentives. The settlement also addressed GLBA violations for failing to provide proper notice regarding the handling of drivers' financial information. Walmart must implement an earnings verification program and is banned from misrepresenting driver earnings.

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