Sarah Markley  |  July 25, 2016

Category: Labor & Employment

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Wal-Mart class action lawsuitWal-Mart is known in the U.S. for providing goods at low prices, however because the low-cost giant is also involved in an unpaid overtime class action lawsuit, they may be known for not properly paying some employees as well.

Overview of Wal-Mart

Wal-Mart, based in Bentonville, Arkansas, was founded in 1962 by Sam Walton. As of May 31, 2016, Walmart has 11,534 stores and clubs in 28 countries.

By revenue, it is the world’s largest company as well as the world’s largest private employer. Wal-Mart boasts 2.2 million employees.

Wal-Mart is still a family owned company with over 50% of the company being owned by Walton’s heirs. It is considered one of the world’s most valuable companies and is the largest grocery retailer in the U.S.

Wal-Mart Involved in Unpaid Overtime Class Action Lawsuit

Despite its gigantic market share and millions of employees, Wal-Mart continues to be the subject of labor-related lawsuits. Latest in these is an unpaid overtime class action lawsuit.

According to this recent unpaid overtime class action lawsuit, overtime exempt employees allegedly have been forced to work longer hours and because of this, are often paid less per hour than hourly employees.

The Wal-Mart assistant managers who have brought this lawsuit claim that Wal-Mart intentionally shifts menial tasks away from hourly employees to avoid paying overtime. They state that Wal-Mart forces them to do those tasks.

According to this unpaid overtime class action lawsuit, Wal-Mart frequently schedules its assistant managers to work on days off. They are not paid for this time and are required to do the same work of those they have been hired to supervise.

In Pennsylvania, where this request for class certification is taking place, these practices, allegedly, are standard. The managers also claim that this practice is routine throughout the company.

According to the deposition of one manager, “I was required by my manager to work a full shift on what [was] supposed to be my day off. My co-manager … told me that coming in on my day off was voluntary, but if I chose not to volunteer, I would be ‘voluntold’ to come in to the store.”

The assistant managers in this unpaid class action lawsuit explain that because budget goals are handed down from the Bentonville headquarters and spread throughout the whole nationwide company, not only the 2,300 assistant managers should be included in this class. They claim that this should apply to all assistant managers throughout the company.

They claim, “The ‘preferred’ wage is set by the home office (as a percentage of anticipated sales), and stores are given targets that are significantly lower than the ‘actual wage’ was in the prior year.”

In essence, each store is given a goal budget to pay their employees at a lesser rate than what was actually paid the previous year.

The assistant managers also claim that they are often closely supervised and have little room to make decisions for themselves.

“Assistant managers are frequently told by their supervisors they cannot leave until the store or co-manager gives them permission, and permission is often withheld until the assistant manager perform additional manual tasks,” they explain. 

In August 2013 this unpaid overtime class action lawsuit was filed by Andrew Swank. He alleged violations of Pennsylvania law and sought class certification.

In February 2014, James Paolicelli filed another suit claiming violations of the Fair Labor Standards Act and also seeking class certification. These lawsuits were consolidated in May 2015. 

The Wal-Mart Unpaid Overtime Class Action Lawsuit is Swank v. Wal-Mart Stores Inc., Case No. 2:13-cv-01185, in the U.S. District Court for the Western District of Pennsylvania.

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4 thoughts onWal-Mart Faces Unpaid Overtime Class Action Lawsuit

  1. Crystal says:

    The class action lawsuit case no. 2:13-cv-01185 U.S.District .Court for the Western District. Can you tell me what part of the Western District of Pennsylvania this is? ASAP if it’s legitimate and near me I have information along with former assistant managers from Walmart that will be beneficial to your case.

  2. Roger m Spivey says:

    Walmart underpaid me by a $1.00 an hr for 5 months. They don’t disagree with me but now responding to me either. It comes to over $924.00. My local store personnel office tells me they will email them, my any time I ask

  3. Desiree clark says:

    I was an assistant manager at walmart and not only require to stay later, not able to leave, come in on days off I was also forced/harassed by my store manager and 2 co managers to walk off my job in which I worked for this company for 11 years

    1. Kim says:

      As a Sam’s club asst manager, we are scheduled 50 hours and are expected to stay until tasks are. Completed. We usually work over 60. When figuring out an hourly rate, we make. Way less than a majority of our hourly assoxiates

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