Walmart Faces Class Action Lawsuit Over Delivery Driver Pay and Benefits

Walmart delivery drivers are at the center of a class action lawsuit claiming the company is not providing fair pay and benefits.

The lawsuit alleges that Walmart is misclassifying delivery drivers as independent contractors, rather than employees, to avoid paying them benefits and overtime pay.

This move has left many drivers struggling to make ends meet, with some reportedly earning as little as $5 an hour.

Walmart has a significant stake in the delivery market, with plans to expand its delivery service to 4,000 stores by the end of 2022.

Walmart allegedly required delivery drivers to use Branch accounts to receive payment, which led to unnecessary financial burdens for over a million workers nationwide.

The Consumer Financial Protection Bureau (CFPB) claims Walmart and Branch Messenger made false promises to drivers, telling them that using Branch was a requirement to get paid and that those who refused would be terminated.

Drivers had to follow a complex process to access their funds, and faced further delays or fees if they needed to transfer money into a different account. This resulted in workers paying more than $10 million in fees to transfer earnings.

Here are the key allegations made by the CFPB:

The CFPB Director Rohit Chopra called these charges "junk fees", alleging that Walmart and Branch created unnecessary financial burdens for over a million workers nationwide.

For many people in Louisiana, gig work is a lifeline to support their families and cover increasing living costs. With rising fees, financial stability is at risk.

The allegations in this case hit close to home for Louisiana's workforce, who rely on gig work to make ends meet. This highlights broader concerns about protecting workers' rights in the growing gig economy.

Walmart is one of the defendants in the lawsuit, alongside Branch Messenger. The Consumer Financial Protection Bureau (CFPB) filed the lawsuit, alleging that Walmart and Branch Messenger forced delivery drivers to use costly deposit accounts to get paid.

The CFPB claims that Walmart and Branch Messenger opened Branch accounts for over a million drivers without their consent, and then deposited their pay into these accounts. Walmart allegedly told drivers that they would be fired if they didn't use the Branch accounts.

Branch Messenger is accused of failing to investigate alleged errors, failing to provide certain disclosures, failing to maintain records, failing to follow through on stop payment requests, and illegally requiring consumers to waive their rights under the law.

Walmart disputes the agency's allegations, stating that the CFPB's lawsuit is riddled with factual errors and contains exaggerations and blatant misstatements of settled principles of law. The CFPB never allowed Walmart a fair opportunity to present its case during their rushed investigation.

The CFPB's lawsuit claims that drivers faced numerous delays or fees if they needed to transfer the money into a different account, resulting in more than $10 million in "junk fees".