CFPB Files Lawsuit Against Walmart and Branch Messenger Over Alleged Unlawful Pay Practices for Gig Workers. The Consumer Financial Protection Bureau (CFPB) has taken legal action against Walmart and scheduling platform Branch Messenger, accusing the companies of illegal pay practices that impacted delivery drivers in Walmart’s Spark program. The lawsuit claims that Walmart and Branch misled workers about their wage access and forced them to use costly deposit accounts.
Alleged Violations Affecting 1 Million Gig Workers
Filed last week, the lawsuit alleges that for nearly two years, starting in 2021, Walmart and Branch violated federal law by requiring drivers in the Spark program to use Branch’s accounts for payments. According to the CFPB, Walmart and Branch forced around 1 million drivers to use these accounts and threatened termination for those who opted out. CFPB Files Lawsuit Against Walmart and Branch Messenger Over Alleged Unlawful Pay Practices for Gig Workers
Walmart’s Spark program relies on gig workers for “last mile” deliveries from Walmart stores to customers’ homes across the country. The lawsuit highlights concerns over workers being misinformed about how to access their earnings and being charged fees for using the required deposit accounts.
The CFPB’s suit brings attention to the growing scrutiny of gig economy labor practices, particularly in relation to how companies manage compensation and pay methods.
For more updates on the case and the implications for gig workers, visit JacobiJournal.com. For further details, read the full report on Bloomberg.