If you’re thinking about taking on gig work — driving, fixing, delivering, or tasking — you’re probably thinking about pay. But what if a company promises they’ll pay you a certain amount and then ends up paying you less?
The FTC alleges that’s what happened to drivers of Walmart’s delivery service, Spark Driver. The FTC’s lawsuit charged Walmart with misrepresenting how much drivers would earn through tips, base pay, and incentives — which caused drivers to lose millions of dollars in expected earnings. To settle the allegations, Walmart has agreed to pay $100 million, which includes payments it’s already begun to make to reimburse drivers and a fund Walmart will create for drivers who haven’t yet received the earnings and tips Walmart promised.
When advertising gig work, companies (big and small) have to tell the truth about how much you’ll make. To evaluate whether a gig is worth your time and effort:
- Check earnings claims. Gig work opportunities often have different pay structures than traditional jobs. Will you get paid hourly or by gig? And if you accept the gig, get a breakdown of your earnings to see if you’re getting paid what was promised.
- Research the company. Search for the company name with words like “complaint” or “review” to spot issues other workers experienced.
- Talk with current and past workers about their time at the company. Learn about their experiences, income, and any out-of-pocket expenses.
If you think a company is making misleading claims about how much you’ll earn, report it to the FTC: ReportFraud.ftc.gov.