The store would be much smaller than a typical Wal-Mart, about one-fifth the size, and would be the first of the company's so-called "neighborhood markets" to open in Los Angeles County.
The group, Los Angeles Alliance for a New Economy, accuses Wal-Mart of failing to provide adequate pay and benefits for its employees.
"I have personally seen Wal-Mart take many measures that reduce pay and increase work for our overburdened staff," said Wal-Mart employee Angie Rodriguez.
In response, Wal-Mart issued a statement saying, in part: "In California, our full-time average hourly wage is $12.69 per hour, 58 percent above the state's minimum wage. ... Wal-Mart medical plans are available for as little as $15 bi-weekly and we insure more than 1 million people in the U.S."