Wal-Mart Staff Awarded $62M

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The New York Sun

PHILADELPHIA — Wal-Mart employees in Pennsylvania who previously won a $78.5 million class-action award for working off the clock will share an additional $62.3 million in damages, a judge ruled today.

About 125,000 people will receive $500 each in damages under a state law invoked when a company, without cause, withholds pay for more than 30 days.

A Philadelphia jury last year awarded the employees the exact amount they had sought, rejecting Wal-Mart’s claim that some people chose to work through breaks or that a few minutes of extra work here and there was insignificant.

“Just as highly paid executives’ promised equity interests or put options or percentage of sale proceeds are protected fringe benefits and wage supplements, so too the monetary equivalents of ‘paid break’ time cashiers and other employees were prohibited from taking are protected fringe benefits and wage supplements,” Common Pleas Judge Mark Bernstein wrote.

Similar suits charging that Wal-Mart violated state wage laws are in play across the country.

A California trial ended with a $172 million verdict that Wal-Mart is appealing while the Bentonville, Ark.-based company settled a Colorado suit for $50 million.

A trial opened last week in Minnesota while suits are pending in New Jersey and several other states.

The Pennsylvania class-action suit involves 187,000 current and former employees who worked at Wal-Mart and Sam’s Clubs from March 1998 through May 2006. The initial $78.5 million award represented the wages lost by those employees.

A smaller number — about 125,000 — qualified for the damage award today. The others were excluded by legal time limits and are seeking interest on the back wages.

“The law in its majesty applies equally to highly paid executives and minimum wage clerks,” Judge Bernstein wrote.


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