A class action has been filed against Wal-Mart Stores, Inc. on behalf of current and former Wal-Mart and Sam's Club stores employees in Minnesota who allege that the company has refused to pay them overtime and for meal and rest breaks since 1998 in violation of state labor laws. The action seeks unspecified compensatory damages.
Named plaintiff Debbie Simonson alleges that she was asked to straighten up her area of the Wal-Mart store in Brooklyn Park "off the clock" before beginning her shifts and after signing out for the day when she worked there in 2000 and 2001. Ms. Simonson said she passed out promotional items to customers, assembled candy bags and cleared carts from the parking lot without being paid for it. Allegedly, she usually didn't get meal or rest breaks, either. Repeated complaints to management allegedly made no difference.
Similar complaints against the nation's largest retailer are at issue in actions filed across the country by Wal-Mart employees. Wal-Mart has admitted that there are at least 37 separate off-the-clock cases seeking class-action status in 29 states. Courts have denied class-action certification in five of those cases to date. A court in Indiana recently certified one class action. In 2001, a class action was certified in Colorado and then settled for a reported $50 million. In late December 2002, a jury in Portland, Oregon, found Wal-Mart guilty of violating federal and state wage-and-hour laws in requiring employees to work "off the clock."
Wal-Mart's stated policy allows employees a paid rest break for every three hours worked and an unpaid meal period of at least 30 minutes for every six hours worked. The Minnesota action alleges that Wal-Mart is concerned only with maximizing profits. Managers allegedly feel so pressured to meet ambitious financial goals that they keep down labor costs by altering time cards or getting employees to work off the clock before and after their shifts.
The action cites one time-clock report from Wal-Mart's Apple Valley store showing one of the sales associates worked 8.28 hours of overtime. On the same report, a handwritten note states: "needs 8.28 hours taken off." The action alleges that employees are also frequently asked to work for 15 to 30 minutes after clocking out at four different Twin Cities Sam's Clubs.
The named plaintiffs earned between $5.46 and $10 per hour and worked at Wal-Mart and Sam's Club stores from 1997 through 2001.