Walmart has been ordered to pay a substantial $35 million to a former truck driver after a jury concluded that the retail giant wrongly accused him of fraud related to workers’ compensation.
In San Bernardino County, the jury determined that Jesus “Jesse” Fonseca, who previously drove trucks for Walmart, deserved $25 million in punitive damages and $9.7 million for actual damages. This payout encompasses lost wages and benefits, as well as compensation for emotional distress and other non-economic injuries.
The situation dates back to 2017 when Fonseca, driving a semi-truck for Walmart, was involved in a rear-end collision with another truck. As a result, he filed a workers’ compensation claim and was advised by his doctor to cease commercial driving and avoid lifting heavy objects. However, Fonseca’s 2019 lawsuit claims that Walmart rejected his request for work accommodations suitable for his injuries. Events took a turn when Walmart accused Fonseca of fraudulent conduct, citing surveillance footage that supposedly showed him driving a personal vehicle during his medical leave. Walmart terminated his employment, alleging ‘intentional dishonesty,’ and marked him as ineligible for rehire.
“Assuming that merely performing day-to-day activities outside work bounds amounts to fraud is outrageous,” stated Fonseca’s complaint. It emphasized that even if someone inadvertently acts beyond their medical work restrictions, it shouldn’t be considered workplace fraud.
In response, Walmart expressed disagreement with the jury’s decision, defending their actions as appropriate. A spokesperson for the company remarked to Fortune, “This verdict does not align with the clear facts of the case,” indicating Walmart’s intention to seek possible redress.
Throughout his 14-year tenure, Fonseca dedicated himself to Walmart, even mentoring fellow drivers for over a decade. But after he was let go, securing a new position proved challenging. When he disclosed to potential employers that Walmart had fired him for “gross misconduct and integrity” due to alleged fraud, it significantly tarnished his prospects, resulting in no job offers.
This $35 million payout is indeed a remarkable turnaround for Fonseca. According to Walmart’s job postings, new regional truck drivers can earn up to $110,000 in their starting year. With the trucking sector grappling with a shortage nearing 80,000 drivers because of heightened demand and setbacks from the pandemic, such as closed training facilities and DMVs, Walmart took steps in 2022 to raise truckers’ salaries. On average, a long-haul driver earned about $56,000 that year.
Mohamed Eldessouky, Fonseca’s other attorney, commented to CBS MoneyWatch that the verdict is a stark reminder. He stated, “If a company challenges an employee’s character and integrity, it must proceed with care and truthfulness. Walmart should reconsider its approach toward the diligent drivers essential to its operations.”
