Judge David O. Carter ruled on Tuesday that the original settlement of $21.5 million was “unfair and inadequate” and fell short of compensating drivers for the overtime and minimum wage violations they had endured. Carter noted that the drivers had “suffered significant economic and other hardships” due to Walmart’s “systemic violations.”
The lawsuit, filed in 2015, alleged that Walmart misclassified its drivers as independent contractors, denying them overtime pay and other benefits. The drivers, who operate their own trucks under contract with Walmart, argued that they were actually employees and should have been compensated accordingly.
“This is a victory for the hardworking drivers who have been exploited by Walmart,” said lead attorney Andrew J. Kim. “Their unwavering determination to fight for justice has resulted in a significant recovery.”
Walmart spokesperson Randy Hargrove said the company was “disappointed” with the judge’s decision but would comply with the ruling. “We respect the court’s decision and remain committed to treating our drivers fairly,” Hargrove said.
The ruling serves as the latest blow to Walmart’s reputation amidst ongoing allegations of workplace violations. In recent years, the company has faced lawsuits and fines over wage theft, discrimination, and other labor issues.
“This ruling sends a strong message to employers who violate labor laws,” said labor law expert Sarah Healey. “It shows that courts will not tolerate companies who exploit their workers.”
The increased payout is expected to provide a substantial financial boost to the truck drivers involved in the lawsuit. It also sends a clear signal that Walmart and other large corporations will be held accountable for labor violations.
