Walmart Settles Lawsuit with Employees Over Unpaid COVID-19 Screening Time
In a recent development, Walmart has reached a $2.5 million settlement in a class-action lawsuit filed by approximately 81,000 of its employees. The settlement, approved on July 15 by U.S. District Judge Susan M. Brnovich, resolves allegations that the retail giant failed to pay wages for time spent in COVID-19 screenings and did not accurately record related work time during the pandemic.
The lawsuit, which had been pending for over three years, was initiated by plaintiffs Kathy Arrison and Tristan Smith in 2021 on behalf of Walmart employees. It involved employees who worked at 112 Walmart locations across Arizona. Walmart had implemented a COVID-19 screening policy for its Arizona stores from April 10, 2020, to Feb. 28, 2022, requiring associates to undergo a multi-step screening process before starting their shifts.
The employees claimed that they were not compensated for the time spent completing these screenings prior to clocking in. Walmart defended itself by stating that employees had no reasonable expectation of additional payment beyond the five minutes added daily for COVID-19 screenings. The company argued that employees were instructed to adjust their time if screenings exceeded this, which they alleged the plaintiffs did not do.
After extensive litigation and a full day of mediation, the parties reached a settlement agreement in February. This preliminary agreement required court approval, which was granted after a final fairness hearing held by Judge Brnovich on July 15. The court found that the plaintiffs’ case was strong, as it had survived motions to dismiss and for summary judgment.
The $2.5 million settlement amount represents approximately 50 percent of the plaintiffs’ potential post-summary judgment claims. It will be distributed to class members based on the number of weeks they worked during the class period from April 10, 2020, to Feb. 28, 2022. Importantly, no funds will revert to Walmart, and any unclaimed amounts will be redistributed to the class members.
In addition to the monetary settlement, the court approved $625,000 in attorneys’ fees and $118,160.55 in litigation expenses for class counsel. The named plaintiffs, Kathy Arrison and Tristan Smith, will also receive a $5,000 service award each for their efforts in representing the class.
This settlement allows Walmart to resolve the litigation without admitting any wrongdoing or liability while providing compensation to the affected employees. A spokesperson for Walmart stated that the company is looking into the matter and will provide a statement as soon as possible.
This settlement highlights the importance of fair compensation for employees, especially during challenging times such as the COVID-19 pandemic. It also serves as a reminder for employers to accurately record work time and ensure that employees are appropriately compensated for all tasks required as part of their job responsibilities.
