Wal-Mart looking at $62 million in damages after losing non-paid work case


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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