Jury awards California truckers $54M in Wal-Mart wage suit

[kscarbel2]

Associated Press  /  November 23, 2016

Wal-Mart intentionally failed to pay hundreds of truck drivers in California the minimum wage, a federal jury decided Wednesday, awarding the drivers more than $54 million in damages and opening up the retail giant to additional penalties.

The seven jurors returned the verdict in a lawsuit accusing the company of not properly paying drivers in accordance with California law for activities that included inspecting and washing their trucks and for layovers.

The company argued that the drivers are paid for activities that include those tasks and that they are not working during layovers. Scott Edelman, an attorney for Wal-Mart, said he was pleased to win seven of 11 claims.

"The findings on the other claims were dictated, we believe, by juror instructions that the court gave that were wrong and will be the subject of post-trial motions and, if necessary, an appeal," he said.

A spokesman said Arkansas-based Wal-Mart Stores Inc. is likely to appeal. Randy Hargrove said in a statement that the company's drivers are among the highest-paid in the industry, earning from about $80,000 to over $100,000 per year.

Wal-Mart believes "that our truck drivers are paid in compliance with California law and often in excess of what California law requires," Hargrove said.

More than 800 drivers who worked for Wal-Mart between October 2005 and October 2015 sought $72 million in damages, the bulk of it for layovers when they say they are required to stay with their trucks. Their attorneys said at trial that additional damages and penalties could push the total Wal-Mart owed to more than $150 million. A judge will determine civil penalties.

"The facts in the law clearly show that these drivers were not paid for all the duties they did, like the pre-and post-trip inspections, and they were not paid for their rest breaks," said Butch Wagner, attorney for the drivers.

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 last year that it was giving a raise to about a half-million U.S. workers. The raises were part of a $1 billion investment that the retailer said also was intended to give workers more opportunities to advance and more consistent schedules.

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

The drivers' attorneys pointed to a ruling in their favor from U.S. District Judge Susan Illston, who said last year that Wal-Mart would be in violation of California law if it enforced its driver pay manuals because they say no pay is earned for certain tasks.

The company argued that it paid drivers for activities that included other, smaller tasks and could not have a separate payment designation for everything they did, some of which took just minutes.

At trial, Edelman likened what the plaintiffs were asking for to a baker who charges a flat fee for a cake, not the individual tasks of buying the eggs, putting the cake in the oven or cleaning the dishes after.

"When you pay a baker $20 to bake a cake, what are you paying that baker to do?" Edelman said during his closing argument. "Is it just to put the cake in the oven for however long? Because that's essentially what the plaintiffs are arguing."

Wal-Mart pays drivers $42 for 10-hour overnight layovers as an extra benefit, but it does not control their time during that period, Edelman said. Drivers are free to go to the movies, exercise or do other activities, he said.

[hurstscrambler]

Is the 80k-100k salary figure accurate?  Andy

[carlotpilot]

2 hours ago, hurstscrambler said:

Is the 80k-100k salary figure accurate?  Andy

I'm guessing 50-60 is more realistic. Very few make 100.000

[Underdog]

Is the 80k-100k salary figure accurate?  Andy

I know several Walmart drivers, all make over $80k. One friend working out of the North Platte, NE DC makes over 100k because of the mileage running Western states.

Maybe California is special, but I thought truck drivers are exempt from minimum wage and overtime rules. Furthermore, inspections and layovers are part of the job, Buttercup. You get paid better than most company drivers, so put on your big-girl panties and suck it up.

[TeamsterGrrrl]

$80k a year for an 84 hour week is nothing special, a UPS Teamster working 60 hours a week makes more. The lawsuit is under California law, which doesn't exempt truckers to the degree federal law does.

[Underdog]

$80k a year for an 84 hour week is nothing special, a UPS Teamster working 60 hours a week makes more. The lawsuit is under California law, which doesn't exempt truckers to the degree federal law does.

Again, misinformed by the mainstream media... I would expect a former driver to know that 84 hour week is bs scare tactics... Walmart drivers I know work their legally allowed 70 and go home for the required 34 hours off. And again with the teamster wages! Unsustainable in today's market. I bet you like those low,low Walmart store prices! UPS has a built in market and little competition. I also see the quality of their drivers has suffered in recent years, some of those guys are as bad as FedEx contractors, and don't deserve their paycheck. Used to be UPS were the ultimate professionals on the road, IMO not so anymore.

[BillyT]

"This is verrry interesting KSB! You would have to be a Philadelphia lawyer to keep up with with all the nuances of federal and state labor law and I'm not even close!. Having said that, it is well known that Wal Mart drivers are among the best treated and paid NON UNION drivers in America! When forming an opinion I try to go by what I see not what I hear! I have hauled many Wal Mart loads and the only time I ever saw a driver hug his fleet manager was at Wal-Mart! Barring any "personal" implications which Wal Mart wouldn't put up with for a second being the politically correct pricks they are I find this very telling! Wal Mart definitely pays the driver for layover,I assume only when he is not at his home terminal. UD,I agree layovers and inspections are a part of the job but the unpaid layover time is part of the screwing that most truckers including most union truckers put up with! As a union car hauler,paid twice master freight scale,My motel was paid for,but not my time! Wal Mart has set the "precedent" of paying the driver the 42dollars for layover so it will be interesting to see if they appeal .An interesting side note to this is the fact that most grocery chains have their own(not lease drivers just like Wal Mart but many are union unlike Wal Mart and Publix in the southeast) The reason is simple! They have more control over an employee than a lease driver! If they were out of stock on a regular basis like K Mart and Sears to a lesser degree they would soon lose market share and possibly go bankrupt!  Any freight jockey will tell that you can tell a well run company by their freight dock! K Mart used to be the worst,slow unloading, rent a cops at the gate etc! Wal Mart gate guards are employees,usually polite and efficient, and a 3 hr limit on your unloading. The Anomoly in this is Target, which is a well run operation that uses leased drivers and I think gate guards.Mostly drop and hook and few delays!

[hurstscrambler]

Wow, I never would have guessed Wal-Mart of all employers would step up to the plate and take care of there drivers.  That is good to hear.   Andy

[BillyT]

Hurst Scrambler,Wal Mart is WELL aware of the value their drivers bring to their overall operation! As I mentioned earlier the spectre of being out of stock in the store as a result of driver incompetence is not something they care to confront! Every one of us is aware of going to K Mart for a "blue light special" and them being out of stock! I'm not convinced that they didn't deliberately stock less than anticipated sales to avoid selling nonprofit items! As part of their p.o.s. style of management! I've heard that a prospective Wal Mart driver goes through up to five interviews before being hired,no small number number of Wal Mart drivers are former  master freight drivers! Wal Mart is a master of paying for their higher wage employees (drivers and mid level managers on up)  by screwing their low level managers and associates! Also by hiring the bare minimum number of store associates needed to serve their customers. Did anyone notice that Wal Marts much ballyhooed pay raise occurred right after their lowest profit quarter in decades!😁

 

[kscarbel2]

Walmart’s private fleet ordered to pay drivers $55M in back pay, carrier plans to appeal

Commercial Carrier Journal (CCJ)  /  November 28, 2016

Walmart Transportation has been ordered by a federal jury to pay 850 current and former truck drivers a total of $55 million in back pay, stemming from a 2015 ruling that the retail giant’s private fleet did not comply with California minimum wage laws.

Notably, the fleet did not pay drivers for federally stipulated 10-hour off-duty periods, accounting for $44.7 million of the class-action payout. Other unpaid tasks included pre- and post-trip inspections. Walmart’s pay practices are in line with standard industry pay practices, as most carriers do not pay drivers for their off-duty time or for time spent on inspections and other non-driving tasks.

Walmart spokesperson Randy Hargrove says the carrier will likely appeal the verdict, arguing that the company was in compliance with California laws requiring workers to be paid minimum wage for all hours worked.

“Our drivers are among the highest paid in the industry, earning from approximately $80,000 to over $100,000 per year,” Hargrove said. “We strongly believe that our truck drivers are paid in compliance with California law and often in excess of what California law requires. Walmart is a great place to work, as demonstrated by the fact that more than 90 percent of our drivers have been with the company for more than 10 years”

The Nov. 22-issued payout order follows a May 2015 ruling by Senior District Judge Susan Illston, who said Walmart’s per-mile pay package put the carrier sideways with California law.

The private fleet “intentionally [failed] to pay minimum wage to class members” between Oct. 7, 2007 and Oct. 15, 2015, the court ruled.

The payout to class members includes $44.69 million for unpaid 10-hour breaks, nearly $6 million for pre- and post-trip inspections and another $3.96 million for 10-minute rest breaks.

The case was originally filed in 2008 in California state court, but the suit was later referred to federal court and stamped with class-action certification, covering about 850 drivers that worked for the company during the 2007-2015  time period.

The case could set a precedent for other carriers operating in the state. CCJ will pursue more on the ruling this week.