January 6, 2025 | JacobiJournal.com — Walmart gig worker pay lawsuit: 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 further details, read the full report on Bloomberg.
FAQs: Understanding the Walmart Gig Worker Pay Lawsuit
What is the Walmart gig worker pay lawsuit about?
The Walmart gig worker pay lawsuit was filed by the CFPB, alleging that Walmart and Branch Messenger misled delivery drivers about accessing their wages and forced them to use costly deposit accounts in the Spark program.
How many gig workers are impacted by this lawsuit?
According to the CFPB, approximately 1 million Walmart Spark delivery drivers were affected by the alleged pay practices, facing threats of termination if they did not comply with using Branch accounts.
What laws are Walmart and Branch accused of violating?
The companies are accused of violating federal labor and pay regulations by restricting wage access and imposing unnecessary financial burdens on gig workers.
What could the outcome of this Walmart gig worker pay lawsuit mean for the gig economy?
The case could set a precedent for stricter oversight of pay practices in gig economy platforms, encouraging transparency and protecting independent contractors from unfair financial practices.
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