Wal-Mart Ordered to Pay $187.6 Million Over Employee Handbook
My law partner and I have blogged, trained, and also counseled clients about the importance of having updated Employee Handbooks at their workplaces. A court case out of Pennsylvania confirms the point we have been trying to make at an expensive price for the employer!
According to Pennsylvania attorney Jodi Frankel, Wal-Mart was just ordered to pay $187.6 million in back pay, damages, and fees to 187,000 current and former employees. It seems Walmart included paid break language in their Employee Handbook, and then failed to provide the benefit.
Frankel noted the Handbook policies in question “…[n]ot only guaranteed, but also mandated, a single fifteen-minute rest break to an employee who worked more than three hours in a shift, and two such breaks if an employee worked more than six hours. Pursuant to the policy, the breaks were to be ‘full, timely, uninterrupted’ and employees were to receive compensation for break time at the applicable rate of pay. The rest break policy set forth in Wal-Mart’s employee handbook, which was provided to all employees at the start of employment.”
While the Handbook stated it was not to be considered a contract by the employee, the Pennsylvania court found Wal-Mart had in fact made a promise regarding rest breaks, and that the promise amounted to a contract. The facts the Court found compelling included Wal-Mart had repeatedly held out rest breaks to employees as a benefit of being employed at Wal-Mart during employee orientation, they mentioned breaks in numerous postings at the workplace, and had taken disciplinary action against managers and employees for failure to follow the rest break policy.
While a Pennsylvania court case interpreting Pennsylvania law is not determinative in Minnesota workplaces, this case does offer some insight for Minnesota employers. Careful attention was paid by the Court to Wal-Mart’s Employee Handbook, and comparison to its actual business practices.
Since this is a start of a new year, it is the perfect time for employers to review and update their employee handbooks to insure they are consistent with current business practices. Also remember to update your policies when you update technology. If the start of a new year doesn’t inspire you to review your business practices, consider the cost and expense of litigation over an employee handbook issue.
Well, some of the fall T.V. shows had their season premieres this week. If you watched the series premiere of
Technology and social media use is morphing at light-speed. Figuring out clear lines and appropriate social behaviors remains very murky. The court system has been no help in providing guidance, due to the lengthy delays between the filing of a case and a final court ruling, generally issued years later.
I previously blogged about Minnesota workplace leave laws covering family and children issues, and wanted to follow-up with a grab bag of some unique leave laws covering specific medical conditions, the military, and voting.
A warehouse fork-lift operator failed a random drug test, and was terminated from employment.
Minnesota workplaces are required to provide time off to employees for a variety of ten little known leaves of absence. While most employers are familiar with the federal Family Medical leave Act (FMLA), and military leave law, few realize Minnesota has a variety of state leave laws which cover some very unique and dare I say, unusual circumstances. The potpourri of leave laws include four which cover family, health and children matters. The last six cover a variety of individual employee issues, including two newer military leaves for family members of service members.
Spring is in the air, which means love is in the air, and we are fast approaching the official wedding season. It is estimated that roughly 1/3 of romantic relationships begin at work. This isn't hard to understand when you consider “...the average American spends 46 hours per week at their job, and 38 % spend more than 50 hours per week on the job,” according to the National Sleep Foundation. The workplace is the new dating arena, making it more likely that romance between employees may blossom. What does that mean for employers?
Yeah! Spring is on its way with summer soon to follow. Most everyone gets excited about the warmer weather and longer days. In Minnesota, we are experiencing the unique weather pattern which normally accompanies early spring. In the morning, it may still be below freezing and winter attire is necessary, but by afternoon the temperature warms to the fifties and a lighter jacket could suffice. So, now is the time employees may start “changing” over their clothes to accommodate the warmer weather.
Mr. Stagg worked for Vintage Place Inc. for approximately 14 months, during which time he struggled with tardiness and absenteeism. Vintage Place Inc. employee handbook contained a progressive-discipline policy, which provided that Vintage's employee[s] may be disciplined according to a five-step schedule. The schedule permitted an oral warning for the first unexcused absence, a written warning for the second, a three-day suspension for the third, a ten-day suspension for the fourth, and termination for the fifth. As a result of his attendance problems, Mr. Stagg had received both an oral and written warnings, and a three-day suspension, but was fired before receiving a ten-day suspension..jpg)
All workplaces should have a social media policy in place which outlines behavioral expectations for employees. This includes non-profits, governmental agencies, as well as private sector businesses. It is pretty difficult to discipline an employee for spending too much time on Ebay or Facebook, or for sharing corporate news through Twitter, without specific guidelines in place.
Why is it important for a business to have an employee handbook or personnel policy manual? There are many reasons.