Wal-Mart Faces $2 Billion In Penalties For Wage & Hour Violations

(Published July 7, 2008)

 

Wal-Mart lost a third wage-and-hour class action lawsuit last week when a Minnesota judge ruled that it violated the state's labor laws more than two million times by cutting short employees' meal and rest breaks and forcing employees to work off the clock.  The judge's 151-page decision awarded $6.5 million in compensatory damages to the class of approximately 56,000 employees.  A jury trial to consider civil penalties and punitive damages is scheduled for October.  State law provides for fines up to $1,000 per violation, meaning Wal-Mart could liable for more than $2 billion in penalties.

 

This ruling follows similar wage-and-hour class actions against Wal-Mart.  In 2005, a California jury ordered Wal-Mart to pay $172 million, and in 2006, a Pennsylvania jury returned a $78 million verdict.  Those cases are on appeal.

 

Braun, et al. v. WalMart, Inc. (D.C. MN, No. 19-CO-01-9790, 2008)