Wal-Mart to pay $54 million in wage and hour lawsuit

Wal-Mart Stores Inc. has agreed to pay up to $54.25 million to settle a wage and hour class action lawsuit.

The lawsuit, Braun et al. vs Wal-Mart, included about 100,000 current and former Wal-Mart employees in Minnesota.

Michelle Braun originally filed the lawsuit in 2002, with Dolores Hummel filing a similar suit in 2004. Both plaintiffs argued that they were forced to miss rest breaks and work off the clock from March 1998 through May 2006. A jury found in favor of Braun and Hummel and awarded damages of $78.8 million. A judge later altered the award to $62.3 million, $10.2 million in interest and $36.5 million in legal fees.

Wal-Mart said it would appeal the verdict.

That appeal obviously is negated by the decision to settle. The statement from plaintiffs’ attorneys and Wal-Mart included the following points:

• Wal-Mart has agreed to maintain various electronic systems, surveys, and notices that will further compliance with wage and hour policies and Minnesota laws.

• “We are satisfied with this settlement, gratified that these hourly workers will now be paid after seven years of litigation, and happy that the State of Minnesota will receive the largest wage and hour civil penalty in its history,” said Justin Perl, of the Minneapolis law firm of Maslon Edelman Borman & Brand, co-lead counsel for the class.

• “Wal-Mart is pleased that the court in Minnesota ruled in its favor on many claims. Our policies are to pay every associate for every hour worked and to make rest and meal breaks available for associates. Any manager who violates these policies is subject to discipline, up to and including termination. We remain committed to providing good jobs with real career opportunity to the 1.45 million U.S. associates who choose to work for Wal-Mart and serve our customers every day, said Wal-Mart spokesperson David Tovar.

A hearing for preliminary approval of the settlement has been scheduled for Jan. 14.