Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘Wal Mart’

Wal-Mart Warehouse Workers File Class Action Wage Theft Lawsuit

Friday, March 4th, 2011

kari-lydersenCHICAGO—After three months of working in a Wal-Mart warehouse in the Chicago suburbs last fall, Robert Hines was fed up with getting paid much less than he had been promised by the company Reliable Staffing, which hired temporary workers to unload containers.

But the final straw came when he wasn’t paid at all for seven 10-12 hour days he’d worked shortly before Thanksgiving, he says. His calls to the agency weren’t returned, and when he went in person to demand his money, he said a manager claimed he and his work partner, Leo Williamson, had never worked those days at all.

So Hines and Williamson are among eight named plaintiffs in a class action lawsuit filed today in federal court charging Reliable Staffing, its owner Daniel Gallagher and Schneider Logistics, which runs the Wal-Mart warehouse in Elwood, Ill., with violating state and federal labor laws.

When former Reliable Staffing workers marched into the agency last Monday demanding pay and billing records (as is their right under the Illinois Day and Temporary Labor Services Act), they were not given any records and, they say, were greeted with hostility by Gallagher.

Deathrice Jimerson and Demetrie Collins allege they were cheated out of hundreds of dollars in wages at a Wal-Mart warehouse.   (Photo by Kari Lydersen)

Deathrice Jimerson and Demetrie Collins allege they were cheated out of hundreds of dollars in wages at a Wal-Mart warehouse. (Photo by Kari Lydersen)

Under the Illinois day labor act, considered one of the nation’s strongest such laws, the workers have the right to see what Reliable Staffing billed Schneider for their work, and what it paid them. If the hours and/or piece rates reported to Schneider and reported to the workers themselves don’t add up, it could show Reliable Staffing was intentionally not paying workers for their labor.

The plaintiffs think that was standard practice at the company.

“The lady looked me in the face and said I have no recollection of you working,” said Hines, 37. “I got vulgar comments, a snazzy attitude from them. And I was breaking my back for peanuts, or to not even be paid at all.”

The lawsuit alleges violations of the aforementioned Illinois Day and Temporary Labor Services Act, along with the Fair Labor Standards Act, the Illinois Minimum Wage Law and the Illinois Wage Payment and Collection Act. Allegations include unpaid overtime, failure to pay state and federal minimum wage and failure to pay at least four hours’ wages when workers were called in to work, as mandated by the day labor services act.

The lawsuit says that plaintiffs who worked for Reliable Staffing from 2006 on were promised $10 an hour, plus a piece rate for unloading trucks, including a higher “premium” piece rate for heavier goods. It alleges they were not paid the piece rate as promised, and that in fact workers were often paid less than state and federal minimum wage along with not being paying overtime.

Hines said that at the rate promised, his paychecks for working often from 6 a.m. to 6 p.m. should have been at least $300 a week – not counting overtime, which he also should have been due. But he was usually paid $239.

The suit also alleges workers were not paid for mandatory waiting time, adding up to multiple hours per week. It says that when one defendant wrote his arrival time on a sign-in sheet, a supervisor actually tore the sheet up.

“Reliable Staffing actually did not keep track of people’s hours,” said attorney Chris Williams. “That’s illegal. Even if you are paying a piece rate, under federal law you need to show that adds up to at least minimum wage.”

And the suit alleges Reliable Staffing violated state laws by failing to provide workers with documentation of where and for which third party they would be working, the nature of the work and how much they would be paid. The suit basically alleges that workers were paid the $10 piece rate only – often divided between two or three workers, workers say – and then the employer simply made up the number of hours the worker supposedly worked by dividing the piece rate by 10.

“The check stub is a fiction—their check stub could show they worked 36 hours when they really worked 72 hours,” said Williams. That’s why, Williams said, it’s so important the workers are able to demand their billing records under the state day labor services act.

“The workers are supposed to be able to go into the office and get this information themselves,” Williams said. “But unfortunately the law isn’t working. That’s why we had to take this to federal court.”

The suit says:

In fact, Defendants Reliable and Gallagher provided Plaintiffs and similarly situated laborers with check stubs that contained false information, showing the final gross compensation to the laborer divided by $10.00, thereby showing a number of hours worked on the check stub that bears no relationship to the actual number of hours worked…

Rather than provide Plaintiffs and the Class with the actual hours worked, Defendants Reliable and Gallagher provided Plaintiffs and the Class with a fictional number of hours worked and a fictional pay rate as described in paragraph.

The lawsuit adds that failing to provide workers documentation of their employment terms makes it easier for employers to cheat workers, saying:

The Illinois legislature found that such at-risk workers are particularly vulnerable to abuse of their labor rights, including unpaid wages, failure to pay for all hours worked, minimum wage and overtime violations, and unlawful deduction from pay for meals, transportation, equipment and other items.

The workers’ want unpaid wages, going back up to three years. The lawsuit also asks for statutory damages on some counts, attorneys’ fees, and that the company be blocked from violating these laws in the future. The suit notes that under the day labor services act, third party companies like Schneider that hire staffing companies are liable and legally responsible for any unpaid wages by the staffing company.

Depending on how the law is interpreted, it’s possible Wal-Mart itself could be liable.

“Hopefully this lawsuit will trickle down and help not just us but other people,” said Hines. “Maybe they’ll wake up and see that they have to treat people fairly if they want to get more out of us. Now they’re sitting there high on the hog, eating nice food, while we’re on the dollar menu at McDonald’s.”

This blog originally was posted on http://www.inthesetimes.com/on February 28, 2011. Reprinted with Permission.

About the Author: Kari Lydersen, an In These Times contributing editor, is a Chicago-based journalist whose works has appeared in The New York Times, the Washington Post, the Chicago Reader and The Progressive, among other publications. Her most recent book is Revolt on Goose Island. In 2011, she was awarded a Studs Terkel Community Media Award for her work. She can be reached at kari.lydersen@gmail.com.


Warehouse Workers Allege Wage Theft, Demand Pay Stubs

Monday, February 28th, 2011

kari-lydersenEmployees will march into Reliable Staffing office to demand billing records, highlight mistreatment

When Reginald Burnett started working in a warehouse unloading trucks of goods destined for Wal-Mart, he said he was told he’d make at least $10 an hour. But he soon realized that figure hinged on unloading a truck in three hours. Depending on how many things are in a truck and how heavy and unwieldy they are, unloading a truck can take two days.

Burnett, 32, soon found himself working 12-hour days, seven days a week, and taking home only $90-100 a day – less than $9 an hour, not counting copious overtime to which he should have been entitled under the law. He said he wasn’t the only one who realized his Friday paycheck from the agency Reliable Staffing “didn’t add up.”

Burnett is among workers who think they are victims of wage theft by the New Lenox, Ill., staffing agency. Reliable Staffing workers have contacted the group Warehouse Workers for Justice, which is trying to shed light on alleged wage and hour violations, unhealthy working conditions, extensive use of temporary labor and other unsettling aspects of the massive warehouse industry in Chicago’s southwest suburbs.

Today Burnett and other former or current Reliable Staffing workers and their supporters are marching into the company demanding copies of their pay stubs and billing records, to highlight what many workers say is erratic, deceptive or non-existent recordkeeping and transparency by the agencies that hire workers to staff warehouses for major multinational companies like Wal-Mart.

“It was everything that goes to Wal-Mart, from BBQ grills to tables to different types of book folders,” said Burnett. “A lot of it was heavy.”

George Johnson is among the former Reliable Staffing workers who never got straight answers about how much he was being paid. He said he was promised $9.25 an hour, but he said he sometimes got as little as $15 for a full eight-hour day during his three months at the company, paid piecemeal for unloading trucks, splitting pay with one or two other workers unloading the same truck. He said he was also told to report to the warehouse at 7 a.m., but wouldn’t start working until 8:30 a.m. or 9 a.m., without being paid for the waiting time.

“It was all screwed up,” said Johnson, 41, who struggled to support eight kids on the meager wages. “You spent all these hours working, unloading these big trucks, one after another after another. For nothing.”

Warehouse Workers for Justice, a campaign launched several years ago by the United Electrical Radio and Machine Workers of America (UE), last year released the study Bad Jobs in Good Movement: Warehouse Work in Will County that showed:

63 percent of warehouse workers were temps and that majority were earning below the poverty line…and one in four warehouse workers needed public assistance and many workers needed a second job in order to make ends meet.

Both Johnson and Burnett were temporary workers, and Johnson since then worked another temporary warehouse job. Burnett has been collecting unemployment since being laid off after about seven months, when his contract ended.

“When they want that order, they’ll say ‘that truck is hot,’” he said. “There are people waiting on the order, they need to complete it right away to get their money, so they make you work harder. But they don’t share the money with you. They are making big money, I kid you not.”

Warehouse Workers for Justice organizers have been meeting with Illinois state legislators to introduce legislation that would limit the number of temporary jobs in the industry, among other workers’ rights protections.
“People deserve permanent jobs,” said Tory Moore, a WWJ organizer who worked at the same warehouse for six years as a temp.

Burnett said he hopes more workers speak up about wage theft and other problems. He said many of the people working for Reliable Staffing have criminal records, something he thinks the company banked on.

“The job is so God-damned hard, most people they hire have felonies, they know most people won’t hire someone with a felony, so they know he’ll put up with it because he’ll have a hard time doing anything else,” Burnett said.

They are trying to prove to society that they’re capable of handling this kind of thing. Making their own money feels good, especially someone who came from the street, who never had anything in their lifetime. Now they don’t have to look over their shoulder, over their back, look out for the police.

They’re going to hold on to that job as long as they can. The people know they’re being cheated, but they don’t want to speak up because if you speak up, you lose your job.

About the Author: Kari Lydersen is an In These Times contributing editor, is a Chicago-based journalist whose works has appeared in The New York Times, the Washington Post, the Chicago Reader and The Progressive, among other publications. Her most recent book is Revolt on Goose Island. In 2011, she was awarded a Studs Terkel Community Media Award for her work. She can be reached at kari.lydersen@gmail.com.

This post originally appeared in http://www.inthesetimes.com on February 21, 2011.

Another Proposed Chicago Wal-Mart Sparks Opposition

Tuesday, February 1st, 2011

Six years ago, Wal-Mart’s efforts to build its first store within the Chicago city limits sparked a city-wide furor and debate over the big box giant’s labor and community practices…and led to the passage of a historic living wage “Big Box Ordinance” heralded as a national model.

But the ordinance was vetoed by Mayor Richard M. Daley, who called it a job-killer that would prevent stores from opening. Wal-Mart then opened a store on the city’s west side free from the living wage requirements. Now Wal-Mart is moving forth with plans – despite community opposition chronicled on this blog – for two stores on Chicago’s south side. And the company reportedly also plans to open a store in a relatively upscale north side neighborhood.

Wal-Mart opponents rally Jan. 27 at a proposed new location for the store on Chicago's north side. (Courtesy of UFCW Local 881)

Last year, the Chicago Federation of Labor and other community groups touted a “deal” with Wal-Mart, which has announced plans to build a dozen stores in Chicago. According to the labor group, the corporation promised to pay at least $8.75 an hour (with an increase of 40 to 60 cents after one year of work) and hire union workers to build all its Chicago stores. The same day, a Wal-Mart spokesman disputed the concessions, saying: “There are no deals. All raised are based on performance.”

Despite the fact that labor claimed a victory last year, Wal-Mart is still not welcome to the city, according to union members, workers’ rights advocates and local business leaders who rallied against the proposed north side Wal-Mart on January 27.

Though the city’s media, elected officials and general public are paying relatively little attention to the issue this time around, UFCW Local 881 and other labor and neighborhood groups are trying to galvanize opposition to the proposed north side store because of Wal-Mart’s labor practices and effects on surrounding communities.

At a rally near the proposed site last week, Susan Hurley, executive director of Jobs with Justice, said:

We are reinforcing our fight to bring good jobs to our communities.  As we work towards positive economic development of our neighborhoods and long-term sustainability, we recognize that there are many alternatives and Walmart should not be one of them.  We cannot afford the widespread expansion of poverty-type Walmart jobs.

The Lakeview neighborhood where Wal-Mart proposes to build is more upscale and commercially vibrant than the south and west side Chicago sites Wal-Mart has previously targeted. Much opposition has come from local retailers, including boutiques and independent high-end stores who don’t want the competition and stigma represented by a Wal-Mart.

Chicago workers’ rights advocates say that along with these concerns, they also want to keep the focus strongly on the labor record of Wal-Mart, which has launched a campaign to clean up its image nationally over recent years, even as it continues to face the nation’s largest class action gender discrimination lawsuit and a host of other legal complaints.

Maureen Martino, executive director of the local Lakeview East Chamber of Commerce, said:

Walmart’s strategy was to build in areas where food and retail deserts exist. Obviously their strategy has changed and perhaps the City Council needs to reassess the impact this will cause on our small business community.

Now is the time to preserve our communities by offering incentives and financial assistance to our small businesses and not add another factor that will lead to storefront vacancies.

And Rev. Calvin Morris, executive director of the Community Renewal Society, added:

Walmart is supposed to be applauded for their appalling corporate behavior for locating themselves in economically underserved areas, but that’s clearly not their only purpose. They also seek to bring their race to the bottom wage and benefit standards to economically thriving neighborhoods all over the city of Chicago. I know Chicago can do better!

Editor’s note: This article, including its headline, has been updated to note the fact that Wal-Mart has disputed that any formal wage agreement between it and Chicago labor groups was made in June 2010.

*This article originally appeared in Working in These Times on Jan 31, 2011. Reprinted with permission.

About the Author: Kari Lydersen is an In These Times contributing editor and a Chicago-based journalist writing for various publications, including the Chicago Reader and The Progressive. Her most recent book is Revolt on Goose Island. She can be reached at kari.lydersen@gmail.com.

Court Upholds $1.9 Million Dollar Verdict In Gender Discrimination Case Against Wal-Mart

Friday, December 4th, 2009

Female Pharmacist Wins Appeal Including Punitive Damages and Huge Front Pay Award

It’s one thing to prove discrimination. It’s an altogether different thing to prove damages which occurred as a result of it.

In the recently published gender discrimination case of Haddad v Wal-Mart Stores Inc,*, the Supreme Court Judicial Court (”SJC”) of Massachusetts affirmed a jury verdict which included $733,000 for 19 years of front pay (future economic loss) and $1 million dollars in punitive damages – and that’s big news.

What Happened In The Case

Cynthia Haddad worked as a pharmacist at Wal-Mart for ten years (seven of those in the Pittsfield, Massachusetts store) mostly as a staff pharmacist. Throughout her time at Wal-Mart, she received excellent evaluations.  

Towards the end of her employment, Haddad accepted the position of pharmacy manager.

During that time, she received less pay than any male pharmacy manager which she consistently complained about.

On April 14th, 2004, Haddad was questioned by three Wal-Mart managers about abut two fraudulent prescriptions.

One of the prescriptions was written in 2002 while Haddad was on duty, and another was written in 2004 while a male pharmacist was on duty.

Haddad told the managers that she did not know anything about the fraudulent prescriptions.

She did admit that the 2002 fraudulent prescription could have been written when she briefly left the pharmacy area to buy a soda at a nearby counter, or when she was in the restroom, eating lunch, or talking to customers.

Haddad’s employment was terminated that same day.

She was told that the reason for her termination was based on her statement during the interview that she failed to secure the pharmacy and left Baran (the technician) unattended in the pharmacy area. Baran, who admitted that she falsified the prescription,was also terminated.

The other pharmacist involved — Richard Blackbird — was on duty the day the fraudulent 2004 prescription was written. That prescription contained his initials.

In a clear case of unequal treatment, neither Blackbird, nor any other pharmacist was questioned about or disciplined for the 2004 fraudulent prescription.

In stark contract to the treatment Haddad received,  Blackbird was appointed to be pharmacy manager at the time of Haddad’s departure.

In addition, Blackbird testified that he commonly left the pharmacy area unsecured to talk to a customer, go the restroom, or get a snack – and that he was unaware of any policy prohibiting this practice.

Haddad filed a lawsuit alleging unequal compensation and termination of employment in violation of Massachusetts laws against discrimination. (M.G.L. c. 151B, s.4) The complaint also stated a claim for defamation.

The jury found in Haddad’s favor and awarded $922,774 in compensatory damages which included:

  • $17,700 in special damages
  • $125,000 for emotional distress
  • $95,000 in back pay
  • $733,000 in front pay

The jury also awarded $1 million dollars in punitive damages.

The Appeal

Wal-Mart appealed claiming a number of errors.

Sufficiency of the Evidence

Wal-Mart claimed that Haddad did not introduce enough evidence to prove discrimination. The Supreme Judicial Court of Massachusetts disagreed. It held that there was sufficient proof to support the verdict including evidence that:

  • Wal-Mart’s proffered reasons for terminating Haddad were false
  • Similarly situated male employees were treated differently than Haddad for similar infractions of the same policy
  • Other incidents occurred  in which male pharmacists were not disciplined for far more serious infractions, ie. one pharmacist was caught writing prescriptions and taking drugs for himself and was not fired
  • Wal-Mart failed to follow its progressive discipline policy

Front Pay

The jury awarded the plaintiff nineteen years of future economic loss which consisted of the difference in pay and benefits that Haddad would have earned at Wal-Mart compared to the pay and benefits she earned at the job she held at the time of trial.

Nineteen years of compensation represented Haddad’s loss of earning through age 65.

Wal-Mart contended that the front pay award was excessive and speculative. The Court disagreed:

While the award of $733,307 represents a significant dollar figure for front pay, the evidence supported such an award ….

The plaintiff testified to her difficulty in obtaining a new job. There was evidence that Wal-Mart’s allegations concerning her alleged responsibility for drug losses became generally known….

[T]he award of lost income of nineteen years is consistent with the plaintiff’s anticipated retirement age of sixty-five.

Based on the plaintiff’s ten-year tenure at Wal-Mart, her testimony that she had planned to continue working at Wal-Mart for the remainder of her career, and the limited number of pharmacies in the area around Pittsfield, the jury permissibly could have concluded that an award of nineteen years was appropriate.

The Court discussed other cases (both state and federal) in which employees were awarded economic loss for long periods of time into the future – particularly where the circumstances indicated that plaintiffs would have difficulty obtaining comparable employment.”

It’s a very helpful opinion for plaintiffs and their lawyers on the issue of damages for future economic loss in wrongful discharge cases

Punitive Damages

It’s not often that we see cases in which an award of punitive damages is affirmed on appeal.

To sustain the award of punitive damages in this case, Haddad had to prove that the defendant’s act “was outrageous, egregious, evil in motive, or undertaken with reckless indifference to the rights of others.”

Some of the evidence which the SJC of Massachusetts relied upon to support the award included proof that:

  • Wal-Mart was aware that gender discrimination was not illegal
  • Wal-Mart refused to pay Haddad the hourly rate it paid male pharmacy managers
  • Wal-Mart fired a ten-year employee for a single infraction after a sham investigation
  • Male pharmacists were not disciplined for similar or far more serious infractions

It wrote:

The jury was warranted in concluding that Wal-Mart’s pattern of unequal treatment of male and female pharmacists was outrageous and reprehensible.

Lessons To Be Learned

There is no doubt that in today’s economic climate the chances of finding comparable employment after a discharge are slim. What this means is that when employees unlawfully lose their jobs, and prove it, it’s likely that we will see larger and larger verdicts just like this one. It’s an important case both for its content and as a harbinger of what’s to come.

* Reprinted from Westlaw with permission of Thomson Reuters

** This post originally appeared in Employee Rights Post on December 1, 2009. Reprinted with permission from the author.

Images:

63.135.122.65/bergdahlphoto/Wal-Mart

www.a-fib.com/images

About the Author: Ellen Simon is recognized as one of the first and foremost employment and civil rights lawyers in the United States. With more than $50* million in verdicts and settlements and over 30 years of experience, Ellen has been listed in Best Lawyers in America and in the National Law Journal as one of the nation’s leading litigators. She has been lauded for her work on landmark cases that established employment law in both state and federal court. Ellen also possesses a wealth of knowledge as a legal analyst discussing high-profile civil cases, employment discrimination and women’s issues. Ms. Simon has been quoted often in local and national news media and is a regular guest on television and radio, including appearances on Court TV. She is the author of the Employee Rights Post, a legal blog devoted to employee and civil rights.

*prior results do not guarantee a similar outcome

Maine Union Members Tell Snowe to Support a Public Option, and More Health Care News

Friday, October 23rd, 2009
Image: Seth Michals

Photo by Joe Kekeris/AFL-CIO

When Sen. Olympia Snowe (R-Maine) suggested she would block health care reform if it included a public option, Maine workers took action: The Maine AFL-CIO put its convention on hold so attendees could call her and tell her that a public option is essential to make reform work. (Recent polls in Maine suggest Mainers strongly support a public option.)

Here are some of the latest developments in the fight for real health care reform:

  • Momentum is building for a public option in final bills being crafted in the U.S. Senate and the House. This is a critical time to contact your senators and representatives.
  • Big companies like Wal-Mart are lobbying hard to exempt the coverage they provide from health care reform. That would leave tens of millions of workers stuck in the same high-cost, no-guarantee system we have today.

    Union members in Arkansas and across the country are telling their senators to support real health care reform.

  • 55 members of Congress who oppose giving America the choice of a public option are actually getting government-administered health care through Medicare.
  • Becky Moeller, president of the Texas AFL-CIO, writes in today’s San Antonio Express-News that the insurance companies are trying to stay in charge of our health care, but working families can’t afford the status quo.
  • Mark Froemke, president of Minnesota’s Northern Valley Labor Council, has a great op-ed today in the Grand Forks Herald that lays out the stakes on health care:

If Congress fails to enact reform, things won’t just stay the same-they’ll get worse…unless we enact changes now, those who manage to keep their coverage will pay an even heftier price over the next 10 years.

As it stands, insurance companies have a stranglehold on our health care system, driving up costs and coming between middle-class Americans and the care they need.

  • Minnesota union members rallied for heath care this week in Duluth, St. Cloud and Rochester.
  • Union members in Louisiana and Arkansas also are rallying and reaching out to their Senators to demand health care reform that works.
  • Yet another insurance company is playing with numbers, seeking to scare people about health care reform. This time it’s WellPoint fudging the facts and leaving out critical information. Check out this great chart from Think Progress that shows how the insurance companies are fighting reform.
  • The Center for American Progress Action Fund has a great new report out today detailing insurance company’s tactics to hide vital information about denying coverage.

This post originally appeared in AFL-CIO blog on October 23, 2009. Re-printed with permission from the author.

About the Author: Seth Michaels is the online campaign coordinator for the AFL-CIO, focusing on the Employee Free Choice campaign. Prior to arriving at the AFL-CIO, he’s worked on online mobilization for Moveon.org, Blue State Digital and the National Jewish Democratic Council. He also spent two years touring the country as a member of the Late Night Players, a sketch comedy troupe.

Wal-Mart Jobs vs. Auto Jobs

Wednesday, June 10th, 2009

The debate I took part in yesterday–well, it’s hard to call it a debate when your opponent is not operating with a full deck of cards…meaning facts–on CNBC really illustrates, in the most starkest terms, the two visions of America. One vision sees unionized jobs, like those that many people have had in the auto industry, as the platform upon which you build a decent society where people can live with dignity and respect. The other vision is that that sees Wal-Mart as the model–where if you work full-time (which Wal-Mart considers as a 34-hour work week) and are part of a family of four, you don’t make enough money to get above the poverty level of $21,000 a-year.

Take a look at this:

You want to both laugh and cry listening to Stephen Moore. If you try to follow his argument, good luck–because it simply isn’t coherent beyond the point “people are lining up for Wal-Mart jobs and so that must mean Wal-Mart jobs are great”. If this is the best the right-wing, pro-business folks can throw out there, boy, it’s a thin bench.

About the Author: Jonathan Tasini is the executive director of Labor Research Association. Tasini ran for the Democratic nomination for the U.S. Senate in New York. For the past 25 years, Jonathan has been a union leader and organizer, a social activist, and a commentator and writer on work, labor and the economy. From 1990 to April 2003, he served as president of the National Writers Union (United Auto Workers Local 1981).He was the lead plaintiff in Tasini vs. The New York Times, the landmark electronic rights case that took on the corporate media’s assault on the rights of thousands of freelance authors.

This article originally appeared in Working Life on June 5, 2009. Re-printed with permission by the author.

Peaceful Revolution: Wal-Mart Third Attempt to Derail Largest Sex Discrimination Class Action

Monday, March 23rd, 2009

Tomorrow, March 24th, Betty Dukes and the now two million women who are members of the largest sex-discrimination class action case, Dukes v. Wal-Mart, move one step closer to victory. A panel of 11 judges of the federal Ninth Circuit Court of Appeals will hear Wal-Mart’s latest attempt to stop this case from moving forward as a class action.

In 2001 Betty Dukes and a handful of women sued Wal-Mart, charging it violates Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination on the basis of an individual’s race, color, religion, sex or national origin. They charged that women who work at Wal-Mart are paid less than men in comparable positions despite having higher performance ratings and greater seniority. They also allege that women receive fewer promotions and when promoted they wait much longer than male employees.

Following two years of discovery, including review of over a million pages of documents (including Wal-Mart’s employee compensation data), depositions of both Wal-Mart executives and our clients, testimony of statisticians, a labor economist and a sociologist, the District Court certified the class finding that common questions of fact and law existed. The court also found that there was significant evidence of corporate-wide practices and policies of excessive subjectivity and gender stereotyping in personnel decisions. The class was certified for injunctive relief and punitive damages.

This is Wal-Mart’s third attempt to decertify the class, and it has garnered the support of large corporate interests, as well as the Pacific Legal Foundation whose amicus brief in support of Wal-Mart sums up their view of this case. Their two points are that “class certification would violate Wal-Mart’s due process rights” and that “federal courts are not the proper forum for redressing broad social justice claims or disputes between social classes.”

When broad social justice goals are embedded in the law, then courts must redress these claims. Title VII was enacted with the stated goal of eliminating the societal norm which relegated women and men of color to second class status in employment, excluding them from many jobs, paying them lower wages and subjecting them to the least desirable working conditions.

Since this action was filed Wal-Mart has put forth numerous arguments seeking to defeat class certification: the case is too big and unmanageable; plaintiffs’ claims are not typical; there is no evidence of common practices that harm the plaintiffs; and Wal-Mart’s right to due process would be violated. The case is big because Wal-Mart, with 4,259 stores, is the nation’s largest employer. Wal-Mart wants the right to defend itself against each and every woman who claims she was paid less or unfairly denied promotion opportunities.

Class actions were established as a vehicle for addressing systemic harms, and Wal-Mart and many other large businesses seek to convince the courts that justice is better served on an individual case by case basis. But given the astronomical disparity in resources between Wal-Mart and the underpaid female class members, this case presents the textbook example of why class actions have been–and still are–the only viable means of redressing systemic discrimination. A Wal-Mart employee has a better chance of winning the Lotto than garnering the resources to sue one of the largest profit-making enterprises in the world. Wal-Mart knows that if it can defeat class certification, it diminishes the likelihood it will be held accountable for its wide-spread discriminatory practices.

Until recently big business enjoyed a period of exuberance and expansion fueled by the mantra that less oversight and regulation fostered business growth and prosperity. Accounts of corporate excesses and irresponsibility (and at times criminal activity) remind us daily that an absence of regulation is not a good thing. Wal-Mart is one of the very few corporations that continues to post a profit and is performing admirably well in the rough economic environment. Our clients want Wal-Mart to succeed, and as the company’s backbone, they should be sharing in its success. They look forward to the day when every woman who works or shops at Wal-Mart knows that the Company’s financial success has not been made at the expense of its female workforce.

A Peaceful Revolution is a blog about innovative ideas to strengthen America’s families through public policies, business practices, and cultural change. Done in collaboration with MomsRising.org, read a new post here each week.

NOTE: Cross posted from Huffington Post: http://www.huffingtonpost.com/debra-a-smith/ipeaceful-revolutioni-wal_b_178260.html

About the Authors: Irma D. Herrera is the Executive Director of Equal Rights Advocates, a San Francisco based organization whose mission is to protect and secure equal rights and economic opportunities for women and girls through litigation and advocacy. Her articles on legal and cultural issues were published in the New York Times, the Washington Post, Newsday, and Ms. Magazine. Debra A. Smith has over twenty-five years experience litigating complex employment discrimination and other civil rights. Debra has been with Equal Rights Advocates since July 2001 where she continues her class action litigation, including co-counseling in the largest sex discrimination class action to date in the United States against Wal-Mart Stores, Inc. which involves more than 1.6 million low wage women workers.

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