Class Action Judge: Walmart Violated Minimum Wage Rules

The retail giant Walmart violated California’s minimum wage law over how it was paying its truck drivers, U.S. District Judge Susan Illston ruled.

The Walmart class action lawsuit accused the company of not paying its truck drivers for certain activities including inspections, waiting at weigh sales, rest breaks, washing trucks and fueling. Judge Illston’s ruling was that truck drivers should be paid at least minimum wage for “all the time they work.” The Walmart class action lawsuit could result in truck drivers receiving more than $100 million in back pay.

Walmart truck drivers brought the class action lawsuit against the retail company in 2008 alleging that even the pay manuals highlighted certain tasks that employees would not be compensated for. The judge looked at pay manuals from 2001, 2006 and 2008 and discovered that while Walmart doesn’t pay drivers by the hour they specifically mention activities that workers will not be paid for including mandatory “layover” time to help reduce fatigue.

The subject of “wage theft” is a common illegal practice in which employers purposefully withhold pay for overtime or rest break periods. Wage theft typically occurs when employees are paid hourly. This ruling is unusual because Walmart truckers are paid by miles driven and delivery of cargo.

They are also generally paid well above minimum wage as many Walmart truck drivers average $80,000 to $100,000 annually. The Walmart minimum wage class action lawsuit is groundbreaking in that the ruling found that even employees who are not hourly workers are entitled to pay for all labor activities they are required to perform.

California Wage and Hour Laws

California labor laws seek to protect employees from overwhelming workloads and by compensating workers for any lunch or rest breaks that are missed.

By state law, employers are required to relieve workers of all duties for a 30-minute lunch break after five hours of labor. In addition, California break laws mandate that workers receive a 10-minute break for every four hours worked. If either of these breaks are missed, employees must be compensated.

For example, an employee who misses a meal break is entitled to one hour of pay at the regular hourly rate, which can be claimed within three years. If a rest break is missed, workers must be paid one-hour of pay within a paycheck cycle.

A rest or meal break according to CA break laws is when the employee is relieved of all duties for the designated amount of time. If this is not possible, it must be agreed upon in writing between the worker and employer and the employee must be compensated.

Wage and Hour Lawsuits

Walmart is one of the largest employers in the nation with more than 1.4 million employees. It is just one of many companies that has come under scrutiny for labor law violations. Other businesses are being investigated for the following: Unpaid wages, unpaid overtime, tip pooling and off the clock working.

The Walmart minimum wage class action lawsuit will be presented to a jury next April to determine actual damages owed to truck drivers.

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