Walmart ordered to pay $35 million to truck driver after false fraud accusation

A jury awarded Walmart’s former truck driver $35 million in damages after he was wrongfully accused of fraud.

A San Bernardino County jury has awarded former Walmart truck driver, Jesus “Jesse” Fonseca, $35 million after finding that the retailer falsely accused him of workers' compensation fraud. The jury's verdict, delivered last week, includes $25 million in punitive damages and $9.7 million in actual damages, which account for lost wages, benefits, and emotional distress Fonseca experienced.

In 2017, Fonseca was rear-ended by another semi-truck while driving for Walmart, leading him to file a workers’ compensation claim. His doctor recommended restrictions, including avoiding commercial driving and heavy lifting. However, Walmart denied his requests for accommodations, eventually accusing him of fraud after claiming surveillance footage showed him driving a personal vehicle while injured. The company subsequently fired him while he was on work-related injury leave, citing a breach of integrity and alleged dishonesty.

Fonseca’s lawsuit, filed in 2019, challenged Walmart’s actions, asserting that even if he had violated his work restrictions by performing everyday activities, it did not equate to fraud. His attorneys argued that Walmart's decision to fire him was unjust, especially given his 14-year tenure and his role as a mentor to other drivers.

Walmart, however, strongly disputed the jury’s decision, calling the verdict "outrageous" and claiming its actions were justified. The company stated that it would seek remedies, possibly in the form of damages.

After his termination, Fonseca struggled to find new employment. Prospective employers were reluctant to hire him after learning that Walmart had fired him for alleged "gross misconduct" due to the fraud accusation. This has had a lasting impact on his career.

The $35 million award represents a substantial financial judgment. Truck drivers at Walmart, according to job listings, can earn up to $110,000 annually, with starting salaries for regional drivers increasing in response to labor shortages in the trucking industry. Walmart’s average long-haul driver salary in 2022 was around $56,000.

This case highlights the importance of fair treatment for workers, especially those injured on the job. Fonseca’s legal victory underscores the need for employers to handle workers' compensation claims with integrity and fairness, ensuring employees are not unjustly penalized when they are injured on the job.