Walmart, Amazon Owe Workers for Time Spent in COVID-19 Screenings, Lawsuits Allege [UPDATE]
by Erin Shaak
Last Updated on June 18, 2024
Haro et al. v. Walmart Inc.
Filed: February 23, 2021 ◆§ 1:21-cv-00239
Walmart faces a lawsuit that claims the retail heavyweight unlawfully failed to pay workers for time spent undergoing mandatory COVID-19 screenings.
California
June 4, 2024 – Judge Preliminarily Approves $5.5M Settlement for Amazon COVID-19 Wages Lawsuit
A federal judge has granted preliminary approval to a $5.5 million settlement to end the proposed class action against Amazon detailed on this page.
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The 13-page preliminary approval order, signed by U.S. District Judge Barbara A. McAuliffe on May 22, 2024, can be found here. Approximately 250,000 people are believed to be covered by the Amazon settlement, the order says.
A final approval hearing is scheduled for October 29, 2024. It is typically after a settlement receives final approval from the court, and any appeals or objections are resolved, that class members begin to receive benefits.
More details of the Amazon COVID-19 unpaid wages class action settlement can be found in the update below.
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March 19, 2024 – Amazon, Plaintiffs Make $5.5M Agreement in COVID-19 Unpaid Wages Settlement
Amazon has agreed to pay $5.5 million to settle the proposed class action detailed on this page, with plans to issue payments to employees who worked in and out of the facility known as OAK4 in California.
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The proposed class action settlement, if preliminarily approved by the court, will cover current and former non-exempt employees who did not work at the OAK4 facility in California and who underwent one or more COVID-19 temperature screenings between April 1, 2020 and July 17, 2021. The deal will also cover those who did work at the OAK4 facility and who underwent such screenings between April 1, 2020 and February 23, 2022.
According to court records, the plaintiffs filed a motion outlining the terms of the agreement with Amazon on February 16, 2024. If the deal is ultimately approved by United States Magistrate Judge Barbara A. McAuliffe, the company will pay $5,500,000 to be distributed among class members pro rata, on a per “weeks worked” or “workweek” basis, the settlement agreement relays.
Per the document, $100,000 of the settlement fund will also be allocated to resolve individual claims arising under the California Private Attorneys General Act (PAGA), with $75,000 to be paid to the Labor and Workforce Development Agency and $25,000 to be divided pro rata among those employees based on their respective number of workweeks.
In addition, the plaintiffs’ motion points out that four Amazon employees who worked outside California during the relevant period will each receive a $50 payment.
Class members will not need to submit a claim to receive their share of the settlement and will receive notice via email or mail if and when the deal is approved, the settlement agreement says.
The document notes that the plaintiffs, “for settlement purposes only,” filed a third amended complaint with the court the same day, on February 16, that removed their collective action claims brought under the federal Fair Labor Standards Act.
ClassAction.org will update this page if and when the deal receives preliminary approval from the court following a March 29, 2024 hearing.
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October 3, 2023 – Settlement Reached in Amazon COVID-19 Unpaid Wages Lawsuit
The parties in the proposed class action detailed on this page have reached a settlement and are in negotiations to finalize the deal.
In a three-page notice filed on August 22, 2023, the parties wrote that, though earlier attempts at mediation had failed, they were “happy to report” that after another mediation effort, they had reached a “tentative” deal and were in the process of documenting the settlement agreement.
Although court records show that United States Magistrate Judge Barbara A. McAuliffe ordered the plaintiffs and Amazon Services, LLC to “file appropriate papers” no later than September 12 of this year, the parties submitted on September 1 a request for an extension of the deadline, writing that additional time was needed to complete negotiations and prepare paperwork.
The judge granted the parties’ request on September 6, extending the deadline until November 13. Details have yet to be made available about the settlement terms.
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Walmart Inc. and Amazon.com Services, LLC face separate proposed class actions that claim the retail heavyweights have unlawfully failed to pay workers for time spent undergoing mandatory COVID-19 screenings.
The lawsuits say employees at Walmart’s retail stores and both companies’ fulfillment centers must spend time undergoing temperature checks and answering a series of questions as part of a physical and medical examination before they are permitted to clock in. Since time spent undergoing mandatory COVID-19 checks counts as compensable time worked, Walmart and Amazon employees should have been paid at their regular or overtime rates, the complaints argue.
The lawsuit against Amazon further alleges workers have been required to undergo unpaid security checks after returning from lunch breaks, and were paid at a reduced overtime rate that failed to take into account all wages earned.
In response to the coronavirus pandemic, Walmart and Amazon implemented company-wide policies that required every hourly employee to undergo an examination to check for COVID-19 symptoms prior to each shift, according to the suits.
Walmart, one of the lawsuits claims, requires retail employees to arrive 30 minutes prior to the start of their shifts and line up in the store’s garden center or auto center for their examinations. Per the suit, the screening process involves a Walmart employee taking each worker’s temperature and asking a series of questions, including whether they’ve had trouble breathing, were coughing, had a runny nose, experienced chest pain, and other health-related inquiries, as well as whether they had traveled recently or been exposed to someone with COVID-19.
If the employee passes the examination, they are given a face mask, gloves and a dated sticker indicating that they’ve cleared the screening, according to the case. If the employee does not pass the initial examination, they are subjected to a second exam in which they are asked a series of follow-up questions to assess whether they have COVID-19 symptoms and present a health risk to the store, the lawsuit says. If the employee passes the second examination, they are similarly provided with a face mask, gloves and dated sticker, the complaint reads. The lawsuit states that a similar screening procedure is in effect at Walmart’s fulfillment centers.
According to the suit against Walmart, the COVID-19 screening process takes anywhere from 10 to 15 minutes but can last longer if other employees are in line to be screened.
The lawsuit against Amazon describes a similar screening process at the company’s fulfillment centers. Per the complaint, employees swipe their identification badge at a security booth and are asked a series of questions, including whether they’ve been exposed to others with COVID-19, are experiencing a runny nose or shortness of breath, and have a face mask to wear. At a second checkpoint, the workers are subjected to a temperature check, the suit says. The lawsuit also describes a second screening method substantially similar to the one employed at Walmart.
The cases contend that during the COVID-19 screenings, workers are subject to Walmart’s or Amazon’s control and are required to perform a series of tasks under threat of discipline.
“In other words,” the complaints state, “[Walmart and Amazon] direct[], command[], and restrain[] [their] employees during the COVID-19 examination; prevent[] them from using that time effectively for their own purposes; and they remain subject to [Walmart’s and Amazon’s] control during the examination.”
Under California law, time spent undergoing COVID-19 screenings is compensable and should be paid at employees’ regular or overtime rates, the lawsuits say.
The case against Amazon goes on to allege that workers are required to undergo mandatory security screenings following their lunch breaks without being properly paid for such. According to the suit, workers who arrive at the company’s fulfillment centers are required to empty their pockets and bags, remove their shoes, belts, jackets, and all metal objects, and present their personal items for inspection. After passing through a metal detector, the workers are permitted to gather their belongings and proceed into the fulfillment center, the case says. Whenever a worker leaves the facility for their lunch break, however, they are required to clock out and submit to the security screening upon returning, the suit attests. Because the workers have clocked out, they are not paid for the time spent in the screening, which usually takes five to 10 minutes, according to the lawsuit.
Finally, the lawsuit against Amazon claims workers have been underpaid for overtime hours given the company issued additional payments that were not factored into employees’ regular pay rates for the purpose of calculating time-and-a-half overtime.
Per the cases, Walmart and Amazon are aware of the requirements under state law to properly pay employees for every hour worked yet have “intentionally and/or recklessly chose not to do so.”
The complaints can be found below.
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