9th Circuit says Walmart must pay $55 million to truck drivers for 'layover time'

Several long-haul truck drivers sued Walmart, alleging they weren't paid for "layover time," certain breaks, and other activities. The company argued it didn't have to pay the truckers for that time, but the U.S. 9th Circuit Court of Appeals (whose rulings apply to all California employers) said not so fast.

Background

Walmart employs a number of long-haul truck drivers in California. They work out of distribution centers that serve as hubs, through which the company delivers items to its stores throughout the western United States. The drivers travel a wide range of routes to different locations.

Walmart's compensation program for the drivers was an "activity-based" pay system. It included pay for:

• Miles driven;
• Specific tasks that constituted defined "activities," such as arriving at or departing from a facility or hooking up a new trailer; and
• $14 an hour for specific events such as time waiting at a store or weather-related delays.

By industry standards, the drivers were paid well, averaging $300 per day and from $80,000 to more than $100,000 per year.

Nevertheless, some drivers were unhappy because Walmart didn't pay for their "layover time"—the 10 hours a day mandated by both federal and California law when long-haul drivers are prohibited from engaging in any work-related activities. Nor did the company pay them extra for rest breaks or other specific work activities.