Walmart Settles $100M Lawsuit Over Gig Delivery Driver Pay

In a major development for the logistics industry, Walmart has agreed to pay $100 million to dismiss a lawsuit by the federal government and 11 states that accused the retail giant of deceiving app-based delivery drivers about the pay they would receive. According to FreightWaves, the settlement resolves allegations that Walmart's Delivery Unlimited and Spark Driver programs misled gig workers about their potential earnings and expenses. The lawsuit claimed Walmart failed to properly reimburse drivers for costs like gas and vehicle maintenance, resulting in many earning less than minimum wage. 'This settlement ensures that Walmart will be held accountable for cheating its workers out of fair pay,' said U.S. Labor Secretary Marty Walsh. 'Gig economy companies cannot avoid their responsibilities by outsourcing jobs and wages.' The $100 million payout will go towards compensating affected delivery drivers across the country. The settlement also requires Walmart to be more transparent about pay and costs for its app-based delivery services going forward. This case highlights the ongoing challenges facing the logistics industry as it increasingly relies on gig workers. Regulators are cracking down on companies that misclassify employees as independent contractors to avoid providing benefits and fair compensation. Logistics firms will need to carefully review their practices to ensure compliance and protect their workforce.