Wal-Mart Faces $2 Billion Labor Law Trial, Judge Says
August 1, 2008
Wal-Mart Stores Inc. broke Minnesota labor laws, a state judge ruled, handing the world’s largest retailer its third-straight defeat in a wage-class action trial and the possibility a jury may order it to pay $2 billion.
The company required hourly employees to work off-the-clock during training and denied full rest or meal breaks in violation of state wage and hour laws, Hastings, Minnesota, District Judge Robert King Jr. held today following a non-jury trial. King ruled Wal-Mart broke labor laws more than 2 million times and ordered the company to give employees $6.5 million in back-pay.
“Wal-Mart’s failure to compensate plaintiffs was willful,” the judge wrote in his 151-page decision. “Wal-Mart was on notice from numerous sources of the wage and hour violations at issue and failed to correct the problem.”
The lawsuit is one of more than 70 cases, including class actions, or group suits, in which Wal-Mart has been accused of wage-law violations. The retailer lost a $78 million jury verdict in Pennsylvania in 2006 over rest breaks and unpaid work and a $172 million verdict in California in 2005 over meal breaks. Both verdicts have been appealed.
Read Article Bloomberg.com
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