The action alleges that Wal-Mart engages in an unwritten policy of giving workers tasks that managers know they cannot complete in the time given them, so that they have to skip rest and meal breaks and work overtime before they clock in and after they have clocked out for the day. This system is allegedly driven by Wal-Mart's managers at the district, store, and regional levels who are given financial incentives to reach certain goals by minimizing store expenses. Their financial compensation and bonuses are allegedly enhanced by lowering overhead costs, the largest component of which is employee payroll.

Allegedly, managers even engage in "locking-in"--physically locking workers in the store overnight so that they cannot leave. Locked-in employees are forced to clock out at their normal times and then continue working without pay through the night. Workers allegedly subject themselves to this treatment under intimidation tactics and threats of discharge and demotion. The action also alleges that one store manager was told that he could charge a maximum of 20 hours of overtime for 280 employees per month without losing his bonuses.

The court certified a class of California workers for three claims, but ruled that monetary damages can only be pursued on the company's meal break denial allegations. It did, however, rule that the workers may pursue orders forcing Wal-Mart to stop its off-the-clock practices and its denials of rest breaks.