Federal judge refuses to enforce $80 million penalty in Wal-Mart minimum wage suit News
Federal judge refuses to enforce $80 million penalty in Wal-Mart minimum wage suit

A judge for the US District Court for the Northern District of California on Wednesday refused [order, PDF] to force Wal-Mart to pay $80 million in a lawsuit where multiple former Wal-Mart truck drivers alleged the company owed them millions of dollars in back pay. Wal-Mart paid their drivers $42 for 10-hour “layover” shifts, time for which the drivers said they were entitled to at least the California minimum wage. A jury ruled [Reuters report] for the drivers in November of last year, giving a nearly $55 million award. The drivers sought an additional $80 million in punitive damages, which was denied by Judge Susan Illston. Wal-Mart lawyers testified that Wal-Mart drivers make between $80,000 and $100,000 a year.

Minimum wage [JURIST backgrounder] raises have recently been successful in several states. In November voters in Arizona, Colorado, Maine and Washington approved [JURIST report] minimum wage increases in their respective states. Oregon created [JURIST report] a new minimum wage standard in March, raising the floor from $9.75 to $12.50 in rural areas and up to $14.75 in larger cities like Portland.

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