Published: October 13, 2009 06:55 pm      

BREAKING NEWS: Clinton judge OKs settlement between Wal-Mart, Iowa workers

CLINTON — After more than eight years of litigation, a Clinton County District Court judge on Tuesday granted final approval to an $11-million settlement of a class-action wage violation lawsuit between hourly employees of Iowa Wal-Mart stores and the retail giant.

Sally Mussman and Ronda Harmon, two former hourly employees of the Wal-Mart Supercenter in Clinton, filed the original Iowa lawsuit in June 2001, claiming the world’s largest retailer was engaging “in a uniform and systematic scheme of wage abuse.” Taylor Vogue, another plaintiff in the case, later withdrew from the case because of severe health problems.

The lawsuit claimed the company failed to compensate employees for off-the-clock work and overtime, altered employee time records and prevented employees from taking lunch and rest breaks. The plaintiffs sought damages for more than 97,000 current and former Wal-Mart employees in Iowa.

According to previous reports, the Iowa lawsuit was one of 63 pending cases in 42 states when Wal-Mart announced in December its intention to settle the pending lawsuits, at a cost between $352 million and $640 million.

The Iowa settlement gained preliminary approval in June. As of Tuesday, cases in 14 states had gained preliminary approval.

Clinton County District Court Judge David Sivright presided over Tuesday’s settlement fairness hearing at the Clinton County Courthouse and signed the final order approving settlement, making the Iowa settlement the 10th to gain a final approval and clearing eligible employees to collect payment.

The settlement class contains 97,259 current and former hourly employees who worked at Wal-Mart stores, supercenters, distribution centers and Sam’s Club stores in Iowa between June 5, 1999, and May 9, 2009.

According to Wal-Mart’s Web site, the company currently has 18,215 employees in Iowa, along with 47 supercenters, 11 discount stores, eight Sam’s Clubs and one distribution center.

Workers will receive between $25 and $300, depending on the type of claim form they file for compensation, their length of employment and the incidents claimed. Average compensation will be about $113.

Employees have a deadline of Dec. 1 to file claims, and a second distribution of compensation will be made to class members with valid addresses. Employees who filed claims will receive additional compensation in the second distribution, according to the settlement terms.

Mussman and Harmon will each receive incentive awards of $15,000.

Court records show 95 workers opted out of the settlement before the exclusion deadline on Sept. 21, leaving 99.91 percent of the eligible workers remaining in the settlement. Only one employee objected to the settlement, and later withdrew his objection.

The settlement is capped at $11 million, and Wal-Mart is required to pay a minimum of $7.5 million. The settlement terms dictate that Wal-Mart is not to discuss the settlement with employees or to retaliate against those who participate in the settlement.

In addition to the monetary terms of the settlement, Wal-Mart agreed to Iowa store technology upgrades to prevent hourly employees from working off the clock and during breaks. The company has implemented a program that locks employees out of electronic devices, such as cash registers, if they are not clocked in for work.

Wal-Mart, headquartered in Bentonville, Ark., continues to deny allegations that the company violated its own policies and state law by failing to pay its employees for all time they worked.

The settlement of an Illinois class-action lawsuit against Wal-Mart will be up for final approval Oct. 29 at the Rock Island County Courthouse.

More information on the Iowa settlement, including a copy of the settlement agreement and other documents, can be found at www.walmartiaclassaction.com.