Peloton owes at least five of its workers money for unpaid labor, according to a BuzzFeed News report. The publication says that in recent months, a Minnesota delivery worker and a Los Angeles salesperson for the company filed lawsuits seeking class action status against it over unpaid overtime. Aside from unpaid labor, the LA salesperson, which worked at Peloton for over five years, also said he wasn’t reimbursed for work expenses and wasn’t paid the full wages required upon termination of employment.
BuzzFeed also talked to three more workers who raised various kinds of pay issues. They complained about having to go back to work after clocking out and not being paid for it, having to work through breaks and not getting expense reimbursements. One worker said there were multiple instances wherein he showed up to work, and there was nothing to do. While Peloton told BuzzFeed that it pays workers for “a minimum of four hours” of work, the person the publication interviewed said he was sent home without pay.
Peloton exploded in popularity at the beginning of the pandemic when gyms were closed and people wanted an exercise machine in their homes. As BuzzFeed News notes, employees at its New York City HQ thought it was the best place to work, but it was the company’s sales/video production staff, assembly workers and delivery drivers that raised concerns about missing pay.
A Peloton spokesperson, however, told BuzzFeed that it provides paid break time, as per labor laws. The spokesperson also said: “We are committed to creating an inclusive, kind, and productive culture where all team members are treated respectfully and have the tools to succeed. Peloton employees are fairly paid, and we are committed to adhering to all legal requirements in every state in which we operate.”
According to a CNBC report earlier this month, Peloton is experiencing a significant drop in demand due to several factors, such as increased competition from rivals. The report claimed that the company is pausing Bike and Tread production as a result, but Peloton CEO John Foley denied that in a letter to employees. He said that rumors the company is halting the production of its exercise machines are false, but he did say that Peloton is “resetting [its] production levels for sustainable growth.” He also said that while layoffs are the last resort as a solution to its its problems, Peloton now needs to “evaluate [its] organization structure and size of [its] team.”