Walmart sued over last-mile delivery driver compensation

The Consumer Financial Protection Bureau (CFPB) filed a lawsuit in late December against Walmart and Branch Messenger for allegedly forcing delivery drivers to use costly deposit accounts for pay reimbursement and misleading workers about how they could access their earnings.

According to the lawsuit, Walmart and Branch opened Branch accounts for last-mile Spark drivers and deposited pay into these accounts without the drivers' consent. Spark consists of independent drivers who work with Walmart to fulfill delivery requests. 

Furthermore, Walmart told Spark drivers that using Branch was a requirement to get paid and that those who refused would be terminated, the lawsuit stated.

The lawsuit also alleged that Walmart and Branch misled workers about the availability of same-day access to earnings. Drivers had to follow a complex process to access their funds and faced further delays or fees if they needed to transfer money into a different account, resulting in workers paying more than $10 million in fees to transfer earnings, the suit claimed.

“Walmart made false promises, illegally opened accounts, and took advantage of more than a million delivery drivers,” said CFPB Director Rohit Chopra. “Companies cannot force workers into getting paid through accounts that drain their earnings with junk fees.”

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The CFPB also alleged that Branch engaged in a number of illegal activities related to consumer accounts, including failing to investigate alleged errors, failing to honor stop-payment requests, failing to maintain necessary records, failing to provide certain disclosures, and illegally requiring consumers to waive their rights under the law.

“The CFPB’s rushed lawsuit is riddled with factual errors and contains exaggerations and blatant misstatements of settled principles of law,” Walmart said in an emailed statement to Supermarket News. “The CFPB never allowed Walmart a fair opportunity to present its case during their rushed investigation. We look forward to vigorously defending the Company before a court that, unlike the CFPB, honors the due process of law.“

Under the Consumer Financial Protection Act (CFPA), the CFPB has the authority to take action against institutions violating consumer financial protection laws, including the Truth in Savings Act, the Electronic Fund Transfer Act, and prohibitions on unfair, deceptive, or abusive acts or practices under the CFPA.

The CFPB is an independent agency within the federal government. 

Walmart, based in Bentonville, Ark., improved worker benefits in 2024. In June, the big-box retailer announced that Walmart associates would have access to an associate-to-technician pipeline program, in addition to more skills certificates. A new bonus program allows hourly store workers to earn up to $1,000 in bonuses a year, and new features in the Me@Walmart app give associates easier access to their pay, discounts, learning opportunities, and benefits.

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Store managers now receive an annual grant of company stock, which could be worth as much as $20,000 annually, depending on the size of the store. A new compensation plan, also announced last year, includes a pay raise and redesigned bonus plan.