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Exterior of a Walmart store against a bright blue sky.
(Photo Credit: Walmart/Flickr)

Update:

  • Walmart has agreed to a class action settlement that will resolve claims the company shortchanged its workers by failing to incorporate bonuses into their sick pay.
  • The class action lawsuit has been paused by a California federal judge in light of the yet-to-be-finalized settlement. 
  • A group of former Walmart employees claimed the company failed to properly include quarterly MyShare nondiscretionary bonus pay into its sick-pay calculations. 
  • The former workers argued their sick-pay rates were calculated solely off of their base pay, allegedly depriving them of the correct amount. 
  • Walmart was unsuccessful in a previous attempt to have the class action lawsuit dismissed. 

(Feb. 05, 2021)

Walmart will have to face a class action lawsuit filed by its California workers accusing the retail giant of breaking the law by shortchanging them.

That’s according to a federal judge’s ruling this week, tossing Walmart’s motion to dismiss the class action lawsuit all together. The workers argue that Walmart broke California labor laws by calculating their sick pay from their base pay instead of their wage rate, which included their bonuses. 

The workers claim that the company did this willfully and that it was no honest miscalculation and the judge agreed.

“Plaintiffs argue this area of law has been settled for thirteen years, negating any possibility that a large employer such as Wal-Mart could argue uncertainty in the law or a good faith belief that it was mistaken,” United State District Judge Roger Benitez said in the ruling, adding that the workers would still need to prove their claims. 

The Californians also argue that they’re owed waiting time penalties in accordance with the California Labor Code, since they did not receive the right amount of sick pay when they stopped working for Walmart. 

The workers are looking for other former California Walmart employees who left the company between April 2017 and now. Over six thousand workers are estimated to be part of this potential Class with a possible payout of at least $7.6 million, according to Walmart’s removal notice reported by Law360.

Walmart is standing by its payment practices reportedly telling Law360 that, “[w]e believe our associates are provided with paid sick leave in accordance with California law.”

This isn’t the first time Walmart has been accused of breaking laws by shortchanging its workers. Service members have filed a class action lawsuit against the company claiming it refuses to pay for military leave. 

Lead plaintiff Nickolas T. says Walmart is required to provide paid military leave under the Uniformed Services Employment and Reemployment Rights Act (USERRA). He’s looking to represent other service members that have taken short-term military leave since October 2004. 

Do you work for Walmart? Do you believe your sick pay is calculated fairly? Tell us your thoughts in the comment section below!

The plaintiffs are represented by Diversity Law Group.

The Walmart California Workers Pay Class Action Lawsuit is Powell, et al v. Walmart Inc., et al., Case No: 3:20-cv-02412, in the U.S. District Court for the Southern District of California.


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4 thoughts onWalmart agrees to settlement in sick-pay class action

  1. La Kendra Shephard says:

    Please add me

  2. Cynthia Johns says:

    Id like to file a class action lawsuit against facebooks Mark Zuckerberg for sitting on payouts in marketplace instead of paying the seller for the item that they sold and when the seller checks on the payout no one takes any responsibility for anything they all state that it is not there area or channel and the issue never gets resolved and the seller loses out on there payout for the item that they sold mean while facebook books on accounting show all the sells of each person and shows that that person has already been paid and the case gets closed with the seller not receiving any money at all.

  3. Cynthia Johns says:

    Id like to file a class action lawsuit against dkoldies game buyers. They give the sellers an estimate for purchase and have the seller send them the game item and then once they have games in there hands they say that the games are fake or counterfiet and have to be destroyed and then never destroy the item nor pay the seller for the item. And the seller loses out and gets a bad reputation at that for which is slander.

  4. Debra Hamlin says:

    Add me please

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