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ARIZONA BUSINESS

Arizona gig workers to collect share of $100M Walmart settlement

Arizona gig workers to receive payments as Wal-Mart settles $100M case over misleading Spark driver pay and tips.

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PHOENIX — Walmart has agreed to pay a $100 million judgment to settle allegations that the company misled its Spark driver gig workers about how much they would earn delivering groceries and other orders.

The settlement is part of a complaint filed by the Federal Trade Commission (FTC), Arizona Attorney General Kris Mayes and 10 other states.

The settlement resolves claims that Walmart deceived drivers about base pay, incentives and tips in its Spark Driver program. Mayes accused Walmart of violating the Arizona Consumer Fraud Act by misrepresenting earnings to thousands of Arizona drivers.

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“When customers leave a tip, they expect it to reach the worker who earned it. When workers are promised pay, they expect to receive it,” Mayes said in an announcement. “This settlement makes both of those things right and puts money back in the pockets of the drivers who deserved it all along.”

According to the federal complaint, Walmart often displayed pay and tip amounts that drivers ultimately did not receive. Regulators say Walmart showed drivers the full customer tip even when that tip would later be split among multiple drivers on the same order. They’re also accused of lowering base pay on “batched” deliveries after drivers accepted the job.

Officials say these practices cost drivers “millions of dollars” across the country.

Arizona’s complaint says Walmart misled local Spark drivers into believing they would be paid the amounts listed in the app, including the “pre‑tip” selected by the customer, only to see their earnings reduced without explanation.

How the Walmart $100 million is divvied up

The settlement money is divided between state payouts and direct payments to Spark drivers across the country. Here’s how:

  • $79 million goes directly to Spark drivers nationwide.
  • $11 million will be shared among the 11 states that joined the lawsuit.
  • Arizona’s share is $869,726.21, which will be deposited into the Attorney General’s Consumer Protection Fund.

Walmart has not admitted wrongdoing, but the company agreed to follow a new set of oversight rules outlined in the settlement.

“Gig‑economy workers deserve honest information about what they’ll be paid, and we’re making clear that companies can’t mislead them to gain an edge,” said an FTC official in the release.

David Iversen is a Phoenix-based journalist and digital content editor. He’s a veteran reporter who has covered everything from local politics to national investigations, writing for FOX, The New York Times, Business Insider, and other outlets.… Read more

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