Wal-Mart Workers in Minnesota Win $54 Million Settlement
)http://www.truthout.org:80/121108LA
Hastings - Some 100,000 current and former hourly employees of
Wal-
Mart and Sam's Club stores in Minnesota - and the state of Minnesota
itself - will share up to $54 million from the giant retailer under a
settlement announced Tuesday.
The agreement is the final stage in a wage-and-hour class action
suit that put a spotlight on Wal-Mart's practice of having employees
work through their rest and meal breaks. In July, Dakota County
District Judge Robert King ruled the company committed more than 2
million violations of the Minnesota Fair Labor Standards Act and
ordered it to pay $6.5 million in back pay.
The judge then scheduled a jury trial to determine the amount of
civil penalties and punitive damages. By reaching a settlement, the
parties avoided going to trial.
People eligible for the settlement worked at Wal-Mart Stores and
Sam's Clubs locations in Minnesota from Sept. 11, 1998, through Nov.
14, 2008. The agreement also includes "a substantial payment to the
State of Minnesota," according to a joint statement released by Wal-
Mart and Maslon Edelman Borman & Brand, one of the law firms
representing the workers.
"We are satisfied with this settlement, gratified that these
hourly workers will now be paid after seven years of litigation, and
happy that the State of Minnesota will receive the largest wage and
hour civil penalty in its history," said Justin Perl, one of the
attorneys for the workers.
"Wal-Mart is pleased that the court in Minnesota ruled in its
favor on many claims," said Wal-Mart spokesperson David Tovar. "Our
policies are to pay every associate for every hour worked and to make
rest and meal breaks available for associates. Any manager who
violates these policies is subject to discipline, up to and including
termination. We remain committed to providing good jobs with real
career opportunity to the 1.45 million U.S. associates who choose to
work for Wal-Mart and serve our customers every day."
In his ruling in July, Judge King found that Wal-Mart repeatedly
and willfully violated Minnesota labor laws or its contract with its
employees on the issues of contractual rest breaks, statutory meal
breaks, shaving time from paid rest breaks and failure to maintain
accurate records.
In the decision, the judge found that Wal-Mart was aware that
employees were not receiving breaks to which they were entitled. "In
essence, they put their heads in the sand," King stated.
In testimony before Judge King, former Wal-Mart workers described
being forced to miss breaks so they could keep up with the work, even
to the point of not having time to go to the bathroom.
As part of the settlement, Wal-Mart has agreed to maintain
various
electronic systems, surveys, and notices that will further compliance
with wage and hour policies and Minnesota laws. The settlement is
subject to approval by the trial court, and the exact amount paid to
class members will depend on the court's approval as well as on the
number and amount of claims that are submitted by class members, the
parties said.
A hearing for preliminary approval of the settlement has been
scheduled for Jan. 14, 2009.
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