Consumer protection agency sues Walmart, Branch alleging illegal pay practices for gig drivers
Associated PressNEW YORK — The Consumer Financial Protection Bureau has sued Walmart and work scheduling platform Branch Messenger for allegedly forcing delivery drivers that are part of the discounter’s gig program to use costly deposit accounts to get paid and mispresented how they could access their wages. The agency alleged last week that for approximately two years starting in 2021, Walmart and Branch violated federal law by forcing 1 million drivers on its so-called Spark program to use Branch to get paid and that they would terminate workers who didn’t want to use these accounts. “Walmart made false promises, illegally opened accounts, and took advantage of more than a million delivery drivers,” said CFPB Director Rohit Chopra in a statement released Dec. 23. “Branch has provided Walmart and their driver partners valuable services allowing quick and easy access to funds via their business accounts—a key fact the bureau’s press release omits,” the statement said.
History of this topic
Walmart accused of illegally forcing over 1 million of its drivers to open bank accounts
The Independent
US sues Walmart, Branch Messenger over payment accounts for delivery drivers
India Today
Walmart sued by US watchdog for opening 1 million illegal accounts, making false promises to delivery drivers
Live Mint
Walmart illegally opened delivery drivers' deposit accounts, U.S. says
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