31 December 2005
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Wal-Mart must pay workers compensation for having denied them their lunch breaks Wal-Mart has lost a lawsuit in a California court and must pay 172 million USD in damages to 116,000 current and former workers. The company had denied them their lunch breaks, which is a violation of a state law. This is the most expensive class action lawsuit for Wal-Mart up to date, and could signal a series of similar decisions in other US states. In California, employees who work for at least six hours in a shift have the right to a 30 minute unpaid lunch break. Ever since 2001, the company had not respected its obligations, and would now have to pay around 1,500 USD on average to every worker concerned. The Alameda County Superior Court awarded the workers a compensation for the lost lunch breaks, which means that Wal-Mart has to pay an hour's wage for every working day without the 30 minute meal period. It also ordered the company to pay punitive damages for having failed to respect its obligations. The California court decision is seen as an important precedent for a large number of similar litigations in other states, altogether 40 cases. Already last year, the company was ordered to pay about 2,000 USD to each worker concerned for lunch break violations. In Colorado, the company settled a similar case, which cost it 50 million USD. Wal-Mart has said that they will appeal the court decision.
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