Looks like Wal-Mart Stores, Inc. (NYSE: WMT) is on the losing end of a rather high-profile lawsuit involving unpaid overtime. A judge in Pennsylvania found that Wal-Mart broke labor laws by forcing some employees to continue working through breaks and even off the clock. Lawyers for the plaintiffs said that damages would net at least $62 million. The lawsuit affects employees who were employed at Wal-Mart stores from 1998 to early in 2006.Deliberations on the damages part of the suit, which covers over 167,000 hourly current and former workers, should continue today, as jurors decide on the damages due to each of the affected employees and former employees. This is not the only "unpaid work" lawsuit Wal-Mart has faced recently -- the retailer settled a Colorado case for $50 million and is appealing a $172 million award handed down last year by a California jury.
The leading plaintiff in the Pennsylvania case is Dolores Hummel, a former Sam's Club employee. Hummel charged in her suit that she had to work through breaks and after she clocked out in order to meet work demands in the bakery. The actual time spent working "for free" was equivalent to eight to 12 unpaid hours a month on average. Hummel said in her suit that "One of Wal-Mart's undisclosed secrets for its profitability is its creation and implementation of a system that encourages off-the-clock work for its hourly employees."
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Reader Comments (Page 1 of 2)
10-13-2006 @ 11:48AM
George Hayek said...
I think Wal-Mart was let off way to easy. I think the fine is insignificant to such a large company. If the fine was in the magnitude of $200 million plus, you would probably get their full and undivided attention.
10-13-2006 @ 12:38PM
Gary E. Sattler said...
Flee from Walmart! Flee for your lives!!!
Oh, excuse me, I've been saying that already.
As you were.
10-13-2006 @ 1:06PM
albert procton said...
Walmartis a boon to those of us are need of low priced goods that we require. As Walmart competes with other retail stores who pay the same or more wages all these complaints are not legitamate. I'll keep going to Walmart and keeping saving money.
10-13-2006 @ 3:44PM
rhonda said...
As an employee for walmart for 3 years i have had no such encouragement to work off the clock or thru breaks.... not all walmart stores are like this... i have stock in the company and will continue to buy them. Theres alot worse places to work than Walmart. Maybe you should try it.
10-13-2006 @ 5:18PM
Marty E. said...
Wal-Mart has always been the the trophy liberals have wanted to mount on their walls. The fact is all of the "hatred" for Wal-Mart is contrived for the political sporting season. If Wal-Mart was so unpopular, it wouldn't be the biggest retailer in the world! And if Wal-Mart was such a terrible place to work, they wouldn't have a waiting list of people wanting to work there. Wal-Mart is nothing short of a great American success story!!
10-13-2006 @ 6:48PM
tom yeager said...
oh boy-87 million dollar fine for the walton family-which is worth 80 BILLION-that will sure show em....reminds me of back when ARCHER DANIELS MIDLAND (NOW CALLED ADM) were fined $100 million for price fixing-in a scheme that netted ADM A BILLION DOLLARS..when they fine was imposed ADM said it had learned its lesson and solemly promised never to do it again......never ever-we mean it-corporate crine doesnt pay-we mean well it does cause bush 1 was president at the time........even bush II can do this math
10-15-2006 @ 8:25AM
Mark said...
Walmart is the largest retailer because of the change in American's ethics. We have become a country of "take what I can get, forget the future and care about no one but myself." If everyone ends up working for Walmart wages, health care will be non-existant, the government will be broke, everyone will drive Kia's and McDonalds will be a gourmet resturant. A company that drives down wages and health care, forces companies who provide benefits and decent pay to close shop, and ignores labor laws is not the type of "success" that will make America a good place to live and work. We need to re-examine how we define "success." Reaping profits by paying the lowest wages is not moniker of success; it is a company making money by exploiting its workers.
We need to admire companies that are good citizens and provide good incomes and lives for their employees and become profitable through employee morale and public respect. Go ahead and buy your products at Walmart to save a few bucks; You will need it when your children work there. They will be calling you you for money so they can have access to health care!
10-13-2006 @ 8:30PM
Freddie said...
Wal Mart is the devil... Or so you think. W/1.8 million employees, 1.3 mil. have a comprehensive insurance package. The other 500k are either part time or elect not to participate in the program. The wages are geographically in line with the other retailers. It's a fair wage for the region you live in. Don't believe me, check it out. This is an election year, and any politician or judge, both elected officials that can chalk up a big one has a great chance of being that guy. That guy w/his 15 min's of fame. Something he/she can reflect on in the polls. Possibly win in this year elections. I'll bet the majority of you nay sayers are loyal and dedicated Wal Mart shoppers. And that being said, I thank you all. You are the difference between my son going to UT or Harvard. Personally I'm a product of the University of Oklahoma, but my store, my Wal Mart store I happily work in is in Texas. Now as a Wal Mart manager, it is forbidden to do ANYTHING of the clock or on your break pertaining to company business. You will NEVER be asked to do so, and the manager that does........ Well, lets say openly that he/she will be TERMINATED. Anybody who says otherwise is just WRONG. Beside we all know someone in our lives who works for Wal Mart. EVERYONE of us. So if complaining about Wal Mart takes you out of your poor job/lives then by all means do it. But if you really think Wal Mart is the devil then please let me be the first to invite you to utilize ANY of my local competitors.
10-13-2006 @ 8:41PM
sue said...
Wally World? What can I say other then its all about the money. They sell stocks and do what ever they can to drive up the price of the stocks. they are not in the least interested in who works for them, You are just a clock#. Wake up folks. Soon at the rate they are going there will be noone left that can go against them. then what? Pay pay untill there is nothing left. I for one have not gone to one of their stores in years, Nor will I ever. For the buying power they have they are quite expensive.
Dont you just love having hundreds of cameras upon you at all time. They say its to keep theft down. Yea really! Everyone is a thief in their eyes..
Welp folks they are the thieves.. Wake up and dont let them ruin Life as we know it.. When K-Mart was on top you were still treated as a customer. In Wally World even after you purchase something there are people at the exit doors to check everything. I dont think so Wally World... Someday in the near future we all will say hey remember Wally World? I sold my stocks years ago. They will crash and im quite sure its going to be very soon...
10-13-2006 @ 9:19PM
marion smith said...
i work for walmart and i am sick to death of everyonbe complaining about how bad we are. at the same time they shop at the stores. i see customers complaining about everything just to get a gift certificate and then they are back the next day. no manager has EVER ALLOWED ANY OF US TO WORK OFF THE CLOCK THEY WILL NOT EVEN ASK YOU A WORK RELATED QUESTION WHEN WE ARE ON BREAK I AM PROUD TO BE WITH THEM
10-13-2006 @ 9:41PM
Michael Natula said...
WalMart was thoroughly exposed in Robert Greenwald's highly recommended, scathing exposé, WALMART - The High Cost of Low Price, http://www.walmartmovie.com/.
For those who think WalMart is so great, why are so many lawsuits in the aggregate hundreds of millions being won against these thieves on behalf of the used and abused employees?
Also, if WalMart stores are so valuable to the populace, why are so many communities all across the country mobilizing to prevent WalMart from being allowed to come in to their towns to build their life sucking stores?
WalMart, like all monopolizers, is BAD for the long term health of local economies.
10-13-2006 @ 10:54PM
Jerome said...
I'm goinng to put it like this. Wal-Mart is a great company to work for. Like all companies, it has it's perks and it also has it's downfalls. No one is perfect. I've been employed for Wal-Mart for five years. It's is no longer my primary job but i will contest that I've never had a manger solicit me or any other employee to work off the clock. That's why it is so absurd to me when i hear of these allegations because, In every concept that is thrown around the store, you MUST work on the clock. That is the one thing they drill in our skulls. I've heard of people being fired because of that. It is a no-joke thing for Wal-Mart. I bet the ring leader in that was just pissed about something and decided to run with it. Of course there are all kinds of loopholes in any arguement, but i highly doubt that any manager would suggest that an employee work off the clock. It's just unheard of. i'm sorry, i have sympathy for those who legitamately feel that they were used like that, but i really don't think that Wal-Mart has endorsed that in any way. As far as the wages go, I think Wal-Mart pays comparable to what other retail chains in it's category pays, now in contrast to that, i do feel that because of the profit margin that Wal-Mart gathers every year, they could invest more into thier associates wages. If we are to be the largest retailer in the world, we should have the largest wage payout in the world for that fact. I tell a lot of people that "wal-mart retail" is a very "different" kind of retail. We're not number one for no reason at all, there are expectations and demands that come out of that. so surely, the competiveness is there, but that should also pre-exist in the wages. But in a general summary, working off the clock has never been a competitive concept that any officer of Wal-Mart has ever given that i've seen.
10-22-2006 @ 12:37AM
tony said...
Looks like Walmart has hired some people to counter the negative PR from this ruling.
10-14-2006 @ 1:47PM
Rirene said...
There wouldn't be such successful lawsuits against Wal-Mart if there weren't managers "using" associates under them to keep their own records spotless. Yes, it does happen that a worker must work through a break because they are currently denied any overtime! Wal-Mart needs to revise their management training (that could be an oxymoron) holding their managers more accountable for their actions in managing their employee associates. Every worker blossoms when their work is appreciated. It comes down to people being important, doesn't it? Of course, that was Sam Walton's expressed belief!
10-26-2006 @ 4:06PM
Jeff said...
Just look at the type of people that shop at Walmart.I have never seen a crapier group of people in my life, just to save a few dollars. For those of you who work at Walmart, get real. I will never shop at Walmart no matter what the cost or location and I do that based on principales, something most of you have none of.
10-26-2006 @ 4:15PM
D Sprad said...
I work for a Wal-Mart Distribution Center.The wages we earn are way above the local standard of this area. I ,in 5yrs,have never been asked to work off the clock.I was once written up for accidently returning to work after lunch 2 mins. early!! People get upset for being told to actually show up for work on time or perform the duties they are being paid to do, and find some reason to take the company to court. People who really want to work and create a career for themselves could do alot worse than work for Wal-Mart.
10-26-2006 @ 6:00PM
J.W. said...
I personally have worked for Walmart for eight years. In those years I have notice a real change in the company. Some for the better and most for the worse. When I first started there they would ask you if you could do just one little thing for them while on lunch from time to time. Now they are not even supposed to ask you a question about work on your lunch break. If they do then you are supposed to fill out a time adjustment on the computer. All these lawsuits have scared them to a small extreme. They are just trying to make up for it now in other areas. If you work in a service department it is near impossible to get break coverage. They won't even answer your pages on the intercom when they know that you need coverage. Since it's a service department you can't leave it unattended so you are stuck there working. Also if someone quits your department, they have the mentality that you don't really need anyone else to take their place saving on having to hire anyone to save money for the company. My personal department when I started had six workers for two shifts. Now we are currently at three people to cover two shifts. What a stat after only eight years. So yes, Walmart no longer asks you to work off the clock in fear of getting sued, but they do take it out from other area's. I won't even mention their newest idea's...
10-26-2006 @ 6:19PM
linda said...
i have worked for walmart for over 3 years now and have never been asked to work off the clock. they have always been great to me and helped me when i needed help. i think walmart is a great place to work
10-26-2006 @ 6:21PM
Angelica said...
I personnaly work for Wal-Mart and am glad I have my job. I am a single mother of 3 and would not be able to make it with out Wal-mart. My job and the low prices at the stores gets me by. In my work experience Wal-mart stresses the policy of not working off the clock. I have worked for Wal-Mart for 5 years and will continue to do so as they are one of the top paying employers in my area.
10-26-2006 @ 7:23PM
shirley said...
i work for walmart and ahve for 7 yrs.as far as working off the clock. well no i have never been asked to .but breaks are a different story.if you get one or both of your breakd your lucky.and they dont have enough coverage so you are expected to work as if you are 2 or 3 people.if you are a dept. manager or up then yes you count but if you are just an hourly associate then you are just a number and they have no compassion for you.wages well thats another joke.in 7 yrs. i have made $4.26 in raises.you do the math thats not even povertylevel.you name 1 other company that has that low of a raise amount in 7 yrs.with no prospect of getting more than 40cents a yr.and im too old and have 5 kids to support to start over.so though im stuck at least the new ones can get enlightened.