Federal judge: Wal-Mart violated state minimum wage laws for drivers

[kscarbel2]

Associated Press / June 10, 2015

Wal-Mart could be on the hook for more than $100 million in back pay after a federal judge ruled the company failed to pay California minimum wage to truck drivers for activities that included inspecting and washing their trucks, an attorney said Wednesday.

The ruling came after the company argued that the drivers are paid for particular activities that include those tasks.

U.S. District Judge Susan Illston sided with the drivers in her May 28 ruling, saying activities that are not compensated separately cannot be included in tasks that are paid for by the company.

"These guys are owed the money, so the sooner they get paid, the better," said Butch Wagner, whose firm represents 720 past and current Wal-Mart drivers.

Wal-Mart spokesman Randy Hargrove said the Arkansas-based company will keep fighting the wage claim. Its drivers are among the best paid in the industry, with some making more than $100,000 a year, he said.

Wal-Mart Stores Inc. — the nation's largest private employer — has faced other criticism over its pay and treatment of U.S. employees.

The company announced earlier this year that it was giving a raise to about a half-million U.S. workers. The raises are part of a $1 billion investment the company says is also intended to give workers more opportunities to advance and more consistent schedules.

In court filings, Wal-Mart attorneys likened the drivers' situation to housekeepers getting paid for each house they clean rather than by the hour.

"Nothing in the Labor Code requires a separate 'pay code' for each act that goes into cleaning the house," the attorneys said in court papers. "Does the Labor Code require drivers to be separately paid for putting a key in the ignition or while sitting at a stop light?"

The drivers said Wal-Mart did not pay them properly for layovers and did not pay them at all for tasks such as weighing their tractor-trailers and completing mandatory paperwork.

Wal-Mart drivers are not paid by the hour. Wages are based on mileage and specified activities.

Illston sided with the drivers on the layover issue as well.

The case is set to go before a jury in April to determine damages, Wagner said. He estimated Wal-Mart could face penalties, damages and interest of as much as $150 million.

[41chevy]

Thought Wal mart paid a small salary plus mileage similar to a waitress?

Than again the current administration seems to have an agenda against Wal Mart and MacDonalds .

[Green Dash]

When I read the title I never would've imagined I'd be taking Wal*Mart's side in this dispute. Take any of their driver's salaries and divide it by total hours worked and then tell me they are not earning minimum wage. All Wal*Mart needs to do to satisfy the court is cut or freeze pay in other areas and then add it back to the pay package in the form of more accessorial pay.

"Does the Labor Code require drivers to be separately paid for putting a key in the ignition or while sitting at a stop light?"

Where does it end? As a driver myself I should probably feel more sympathetic toward the drivers, but I see this lawsuit as frivolous and a complete waste of time.

[Underdog]

It's a vicious circle lol... Walmart CAN'T afford to pay its workers more because it is spending too much on DEFENSE OF FRIVOLOUS LAWSUITS!!!

.02 Gregg

Sent from my XT1254 using Tapatalk

[220cummins]

Bullshit. Walmart should stop mooching of the government and U.S. taxpayers for assistance subsides for workers.

http://www.forbes.com/sites/clareoconnor/2014/04/15/report-walmart-workers-cost-taxpayers-6-2-billion-in-public-assistance/

[41chevy]

Bullshit. Walmart should stop mooching of the government and U.S. taxpayers for assistance subsides for workers.

http://www.forbes.com/sites/clareoconnor/2014/04/15/report-walmart-workers-cost-taxpayers-6-2-billion-in-public-assistance/

These are just as guilty too.

Other large retail chains have been the focus of similar reports in recent months. In October, two studies released to coincide showed that American fast food industry outsourced a combined $7 billion in annual labor costs to taxpayers. McDonald's MCD -0.55% alone accounted for $1.2 billion of that outlay.

Yum Brands came in at a distant number two, with its Pizza Hut, Taco Bell and KFC subsidiaries costing $648 million in benefits programs for workers each year.

A companion report released by the National Employment Law Project found that the 10 biggest fast food corporations in the country are responsible for nearly 60%, or $3.8 billion, of the annual $7 billion outlaid by the taxpayer for low-wage workers. These same 10 companies made a cumulative $7.7 billion in profits in 2012, paying out an additional $7.4 billion in dividends and buybacks to shareholders.

[220cummins]

Exactly. They all need to man up and pay their fair share.

[HeavyGunner]

It always amazes me how big companies get subsidies and still rake in huge profits. I'm not anti big company but in my opinion the free capitalist market needs to be just that.

[41chevy]

It always amazes me how big companies get subsidies and still rake in huge profits. I'm not anti big company but in my opinion the free capitalist market needs to be just that.

You can start with the schools (every body is a winner) move on to Department of Labors discrimination laws ( racial quotas) , on to the employers and employees, wirth more blame on the employees, I feel. Service jobs in Fast food stores, Wal-mart, K- mart and such were NEVER intended to be careers. Kids in high school for a first job, college kids and retiree's for extra cash, or a part time second job maybe, but they were never geared to supporting a family, buying a house or places to retire from after 20 years. They were always for the people I mentioned above for extra cash or getting work experience. Maybe the people who want more money, a pension and other benefits should go to get educated, learn a trade or a get an entry job in a trade as a carpenters helper, a helper at a dealership or something. Work at it,ask questions, looks and learn and speak the same language as the country you live in.

A $10 most places, $12.50 in NY, $ in NYC14 or as California wants $15 an hour minimum wage to put ice in a cup, fries in a basket or a bag of socks or cookies on a shelf just doesn't cut it in my book as being worth that much.