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Problems for Walmart: the company receives complaints about workplace discrimination

Walmart faces criticism for its hiring practices after reports of workplace discrimination

Walmart is a name everyone knows. Its stores are almost everywhere, and millions of people shop there regularly. However, this time the news isn't about its low prices or deals, but about legal issues involving workplace discrimination.

The lawsuit against Walmart

Two former employees have filed a lawsuit against Walmart. They are Mark Balentine and Laseant Sardin, Black men with criminal records. Although they worked at a Walmart distribution center in Elwood, Illinois, they weren't direct employees of the company; they were hired by an external logistics company called Schneider Logistics.

In 2019, Walmart decided to take direct control of this center and terminated the contract with Schneider. This forced employees to reapply for their positions, this time directly with Walmart.

Facade of a Walmart store with a large sign and visible exit entrance.
Two former employees have filed a lawsuit against Walmart | Walmart

At first, everything seemed fine: Balentine and Sardin were offered the positions they already held. However, after the criminal background check, the offers were withdrawn.

Why do they say it's discrimination?

The plaintiffs argue that the decision was unfair. They had worked for years without issues, but the background policy ignored their good record and the time since their convictions.

They also argue that this policy disproportionately affects Black people, who statistically are more likely to have criminal records due to inequalities in the justice system. Moreover, some non-Black applicants with similar records were hired, which reinforces the suspicion of racial discrimination.

Legal aspects

The lawsuit alleges that Walmart violated Title VII of the Civil Rights Act of 1964. This law protects employees and applicants from workplace discrimination and requires that any background check be directly related to the position and necessary for the company. According to Balentine and Sardin, Walmart's policy didn't meet these requirements.

The plaintiffs want Walmart's policy to be declared illegal and its use prohibited in the future. They also seek financial compensation for themselves and others affected, and for the case to be treated as a class action lawsuit.

Implications and background

The case is being processed in the U.S. District Court for the Northern District of Illinois, Eastern Division. Its resolution could set an important precedent for how large companies handle background checks and the hiring of people with criminal records.

Walmart has already faced other legal issues. Recently, it paid $10 million in a lawsuit related to scams in money transfer services. This shows that the company isn't exempt from controversies and that legal challenges can have a considerable impact on its reputation.