A federal jury in California found that Walmart violated state labor laws by misclassifying drivers as independent contractors instead of employees. The drivers argued that this misclassification resulted in them being denied overtime pay, meal breaks, and other benefits.
“This is a victory for truck drivers who have been exploited by Walmart for years,” said Shannon Liss-Riordan, an attorney for the drivers. “It sends a clear message that companies cannot get away with misclassifying their employees.”
Walmart maintains that the drivers were properly classified as independent contractors, but it did not immediately comment on the verdict.
The lawsuit was filed in 2014 by a group of 2,000 drivers who worked for Walmart’s trucking subsidiary, J.B. Hunt Transport Services. The drivers alleged that they were required to work long hours and were not paid overtime. They also claimed that they were responsible for their own expenses, such as fuel and maintenance, which reduced their earnings.
The case has been closely watched by labor unions and industry groups, as it could set a precedent for how truck drivers are classified across the country. The American Trucking Associations, an industry trade group, has argued that misclassification of drivers is a problem that has been going on for years.
“This verdict is a major step towards holding Walmart accountable for its labor practices,” said Terry O’Sullivan, president of the International Brotherhood of Teamsters. “It sends a message to other companies that they cannot get away with exploiting their workers.”
The $54.6 million verdict is one of the largest wage settlements ever awarded to truck drivers. It is unclear whether Walmart will appeal the verdict or settle with the drivers. However, the case is likely to have a significant impact on the way that trucking companies classify their drivers in the future.