Wal-Mart Weighs Appealing Wage Suit to U.S. Supreme Court -- Update

By Chelsey Dulaney 

Wal-Mart Stores Inc. said Tuesday that it is considering an appeal of Monday's Pennsylvania Supreme Court decision to uphold a settlement in class-action suit over worker pay.

The Pennsylvania court upheld a 2007 judgment that required Wal-Mart to pay $188 million in back pay and fees for failing to pay employees for all hours worked and denying them breaks. Wal-Mart had appealed the decision, first to the Pennsylvania Superior Court of Appeals and later to the state's supreme court.

Michael Donovan, an attorney representing the plaintiffs, said an appeal would be "just another delaying tactic to prevent Wal-Mart from paying its employees the money that Wal-Mart stole from them."

As a result of the Pennsylvania decision, Wal-Mart said it expects to take a six-cent hit to its per-share earnings for the quarter ending in January. Wal-Mart in November forecast per-share earnings of $1.46 to $1.56 for the quarter.

Wal-Mart has paid out millions over the years to settle legal battles over its treatment of workers.

In 2012, Wal-Mart agreed to pay employees $4.8 million in back wages and damages, as well as $464,000 in civil penalties, after the U.S. Department of Labor found the company failed to pay overtime to more than 4,500 workers.

That followed a $352 million settlement the Bentonville, Ark.-company paid in 2008 to settle 63 suits across the country over allegations it didn't provide workers with proper rest and meal breaks.

Write to Chelsey Dulaney at [e-mail]

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