Willful Wal-Mart Worker Violations Could Cost $2B in Minn.

Labor and Employment

Willful Wal-Mart Worker Violations Could Cost $2B in Minn.

Posted Jul 1, 2008, 11:06 am CDT
By Martha Neil

Willful violations by Wal-Mart Stores Inc. of wage-and-hour rules in Minnesota could require the mega-retailer to pay $2 billion in penalties for more than 2 million such infractions involving $6.5 million in underpayments to workers, a judge says.

The 151-page ruling by District Judge Robert King Jr., in Hastings, Minn., awards $6.5 million in damages and calls for a new trial to be held to determine the amount of penalties that should be imposed on Wal-Mart for requiring employees to work off the clock and denying them rest and meal breaks, reports Bloomberg. State law allows a fine of up to $1,000 per violation. A copy of the opinion (PDF) is provided by the Pioneer Press.

A Wal-Mart representative says the company may appeal. Its policy, the representative says, calls for employees to be paid for all time worked and get their breaks, and says managers who don't follow this policy are "subject to discipline, up to and including termination.''

The company has been named as a defendant in about 70 such lawsuits around the country, and is currently appealing major verdicts in California and Pennsylvania.

Earlier coverage:

ABAJournal.com: "Judge Adds $49M in Atty Fees to Wal-Mart OT Bill; Total Nears $200M"

New York Times: "Jury Rules Wal-Mart Must Pay $172 Million Over Meal Breaks"

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Posted by Bill - 3 months, 1 week, 6 days, 19 hours, 40 minutes ago

I say kick it up to the Supreme Court, which will deliver a 5-4 vote in favor of Wal-Mart. Justice Scalia will prepare the summary document, saying that in today’s free-market economy Wal-Mart employees have no rights that company management is obligated to recognize.
Posted by gilmore - 3 months, 1 week, 6 days, 47 minutes ago

Wage & hour violations are slowly replacing the discrimination suit as the plaintiffs attorneys’ favorite . It’s ridiculously difficult to prevail in a discrimination suit because of all the defenses, including (my personal favorite) that the discrimination just wasn’t severe or pervasive enough as a matter of law. Wage & hour is more black and white, the law is still employee orientated and the attorney fees or liquidated damages are awarded; depending on willfulness. Likewise, most employers and/or their managers have no idea of the intricacy involved in wage & hour law.
Posted by Sue - 3 months, 1 week, 5 days, 23 hours, 29 minutes ago

#1 (Bill)—Sadly, so true.
Posted by lab - 3 months, 1 week, 5 days, 20 hours, 16 minutes ago

Another reason to boycott Wal-Mart. It didn’t take the Pope to issue his new morality specifications and guidelines to see that Wal-Mart, while purporting to be a wholesome company for which to work is so morally vacant.

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