Texas Attorney General Ken Paxton secured a $13 million settlement with Walmart on July 6, 2026, requiring the retail giant to repay delivery drivers affected by deceptive pay practices in its Spark Driver program.
Investigations by Paxton’s office revealed that Walmart made false representations to drivers regarding their compensation, including pre-tips selected by customers at checkout, base pay amounts, and special incentive earnings opportunities. According to the Texas Attorney General’s press release, Walmart failed to provide drivers with customer tips in certain instances, altered base pay amounts for deliveries after drivers had accepted offers, and misrepresented the requirements drivers needed to satisfy to qualify for additional earnings opportunities.
Half of the $13 million settlement has been paid directly to delivery drivers affected by Walmart’s deceptive practices, according to the Texas Attorney General’s office. The remaining funds support the state’s enforcement efforts. The settlement also requires Walmart to implement measures ensuring drivers receive fair compensation aligned with what is marketed to them, with the Office of the Attorney General continuing to review Walmart’s records and marketing materials to prevent future underpayment or deception.
The Texas settlement follows a broader enforcement action. In February 2026, Walmart agreed to a $100 million judgment to settle Federal Trade Commission and multistate charges over deceptive earnings claims related to the Spark Driver program, according to the FTC. That settlement directed Walmart to pay $79 million directly to drivers across multiple states, with the FTC distributing an additional $10 million to eligible drivers. The February settlement involved attorneys general from Arizona, California, Colorado, Illinois, Michigan, North Carolina, Oklahoma, Pennsylvania, South Carolina, Utah, and Wisconsin.
Paxton said in a statement: “I have secured millions of dollars for delivery drivers from Walmart to ensure that these hardworking Texans receive the tips and wages they deserve. Any big corporation that promises certain offers and pay in exchange for services must honor those promises.”
Sources
- Texas Attorney General — Official press release announcing the $13 million settlement, details of deceptive practices, and payment distribution
- Federal Trade Commission — February 2026 press release on the $100 million multistate settlement and payment structure
- Bloomberg Tax — Reporting on the Texas settlement and Walmart’s agreement to end the investigation
- Law360 — Coverage of the settlement terms and driver pay claims
