Walmart Ordered to Pay $35 Million in Fraud Case
Walmart has been mandated to compensate former truck driver Jesus “Jesse” Fonseca with $35 million after a jury concluded that the company wrongfully accused him of workers’ compensation fraud.
A jury in San Bernardino County issued a two-part ruling last week, determining that Fonseca is entitled to $25 million in punitive damages and $9.7 million in actual damages. The latter includes compensation for lost wages, benefits, and emotional distress.
In 2017, Fonseca was involved in an accident while driving a semi-truck for Walmart, leading him to file a workers’ compensation claim. A doctor recommended that he avoid commercial driving and minimize lifting. However, Walmart allegedly denied his requests for modified tasks to accommodate his injuries. Subsequently, the company claimed he committed fraud, stating they had surveillance footage of him driving a personal vehicle despite his injury. Fonseca was terminated while on leave for his work-related injury, accused of being “intentionally dishonest” and deemed ineligible for rehire.
Fonseca’s complaint challenged the idea that performing daily activities outside work restrictions constitutes fraud, asserting that even inadvertent violations do not equate to workplace fraud.
Walmart has contested the jury’s decision, maintaining that its actions were justified and indicating it will seek remedies, possibly in the form of damages.
Fonseca, who dedicated 14 years to Walmart and mentored new drivers, faced difficulty finding employment following his dismissal. The lawsuit details that when applying for new jobs, he had to disclose that Walmart fired him for “gross misconduct and integrity” due to the fraud suspension, which resulted in not receiving job offers.
The awarded $35 million in damages represents a substantial sum for Fonseca, especially given the regional truck drivers at Walmart can earn up to $110,000 in their first year. Following a driver shortage exacerbated by the pandemic, Walmart increased salaries for these positions. One of Fonseca’s attorneys emphasized that the verdict conveys a noteworthy message regarding corporate accountability and the treatment of employees.
