On November 27, 2023, a class action complaint filed in Washington State court was moved to federal court alleging Walmart improperly misclassified its app-based delivery drivers as independent contractors as opposed to employees, who must receive minimum and overtime wages and other benefits depending on which State an individual resides.
In determining whether a worker should be classified as an employee rather than an independent contractor, courts evaluate various factors that rest on the degree of control an employer has over the worker. Chief among these factors is the amount of control an employer exerts over workers' work schedules and conditions of employment, whether the employer can hire and fire the worker, and whether the employer determines workers' rates and method of pay, among other things.
In the complaint, the plaintiff alleges delivery drivers should be classified as employees because Walmart directed them on how and where to load goods into their vehicles, set drivers' rates of compensation and method of pay, and could fire drivers if they declined too many delivery jobs. The complaint further alleges that because of Walmart's misclassification of delivery drivers as independent contractors, drivers are unlawfully deprived of minimum and overtime wages and pay for time spent waiting to pick up deliveries and driving (instead, Walmart pays delivery drivers based on the number of deliveries they make to customers). Lastly, the complaint alleges Walmart retained tips paid by customers, and failed to provide drivers with breaks or paid sick leave under Washington law.
Workers who believe their employer improperly classified them as independent contractors, denied them minimum or overtime wages, or subjected them to other workplace violations, should seek legal counsel to analyze their potential claims.
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