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Wal-Mart loses lawsuit

Wal-Mart loses lawsuit

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OAKLAND, Calif. - A California jury on Thursday awarded $172 million to thousands of employees at Wal-Mart Stores Inc. who claimed they were denied lunch breaks illegally.

The world's largest retailer was ordered to pay $57 million in general damages and $115 million in punitive damages to about 116,000 current and former California em-ployees for violating a 2001 state law that requires employers to give 30-minute, unpaid lunch breaks to employees who work at least six hours.

The damages originally were tallied as $207 million after a court clerk misread the punitive damages as $150 million. The amount of punitive damages later was clarified.

The class-action lawsuit in Alameda County Superior Court is one of about 40 nationwide claiming workplace violations by Wal-Mart, and the first to go to trial. The Bentonville, Ark.-based retailer, which earned $10 billion last year, settled a similar lawsuit in Colorado for $50 million.

In the California suit, Wal-Mart had claimed that workers did not demand penalty wages on a timely basis. Under the law, the company must pay workers a full hour's wages for every missed lunch.

The company also said it paid some employees their penalty pay and, in 2003, most workers agreed to waive their meal periods as the law allows.

The lawsuit covers former and current employees in California from 2001 to 2005. The workers claimed they were owed more than $66 million plus interest, and sought damages to punish the company for contended wrongdoing.

The lawsuit was filed by several former Wal-Mart employees in the San Fran-cisco Bay area in 2001. It took four years of legal wrangling to get to trial.

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