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US Court Strikes Blow to Wal-Mart in Sex Bias Suit
SAN FRANCISCO - In a major blow to Wal-Mart Stores Inc, a sex-discrimination lawsuit against the retailer can proceed as a class-action case covering more than 1 million female employees, a U.S. court ruled on Monday.
The lawsuit argues that female workers were paid less and received fewer promotions at Wal-Mart than male counterparts, and that the retailer's corporate structure fostered this gender discrimination. Wal-Mart, the world's largest retailer, had asked the Ninth
Circuit Court of Appeals in San Francisco to undo class-action
certification in what could be the largest sexual
discrimination lawsuit in the nation's history.
The lawsuit argues that female workers were paid less and received fewer promotions at Wal-Mart than male counterparts, and that the retailer's corporate structure fostered this gender discrimination.
"It's good day," said Brad Seligman, an attorney for the plaintiffs. "We've been in the Ninth Circuit for five years. It's been long awaited."
Wal-Mart was not immediately available for a comment.
Paul Secunda, an associate professor of law at Marquette University Law School, called the ruling "a huge win for the plaintiffs, and a tremendous loss for Wal-Mart."
"Wal-Mart has potentially huge liability," he said. Given the number of employees involved and many years of pay at issue "the amount of liability can be many billions of dollars."
The class action will now cover the claims made by women who have worked at Wal-Mart since June 2001, when the lawsuit was filed.
Class-action lawsuits generally make it easier for groups of plaintiffs to sue well-heeled corporations and have led to large payouts by tobacco makers, and oil and food companies in the United States.
Wal-Mart had argued that it would be too unwieldy to bring the case forward as a class action -- a premise the appeals court dismissed.
"Although the size of this class action is large, mere size does not render a case unmanageable," the court wrote.
Seligman called Wal-Mart's argument "a version of too big to fail."
"Other than its size, which is huge, the issues in this case are not remarkable," Seligman said. "This is a garden variety, old-school discrimination case. If this was a class of 500 people, no one would be saying anything."
The court said on Monday that it agreed with a lower court's ruling that female workers can bring claims for injunctive and declaratory relief and back pay through a class- action lawsuit.
It ruled that the district court should consider whether to certify the class for claims of punitive damages. It also sent back to the lower court claims of potential plaintiffs who no longer worked for Wal-Mart when the complaint was filed in 1998.
Seligman said those members made up roughly 20 percent of the class.
The suit originated with Wal-Mart worker Betty Dukes who sued for sexual discrimination in 2001 with six other plaintiffs in a class-action lawsuit that extended the case to all women who had worked at the company since 1998.
A trial judge certified the case as a class-action in 2004.
The plaintiffs had been seeking an undetermined amount in lost pay and punitive damages, together with injunctive and declaratory relief, which would require Wal-Mart to rectify the pay and promotion inequities.

29 Comments so far
Show AllWal-Mart the ongoing, deformed, evil, poster child for corporate capital punishment.
Wal-Mart is the ultimate corruption and conclusion of capitalism,
on its face a manifest injustice to society and a stench in the
nostrils of any man with an ounce of integrity.
Just look at the newly vacated small stores around all the recently
opened Wal-Mart Super Stores, just mention the need for
Wal-Mart to have a union when talking to one of their minimum
wage “Associate” slaves and see how long it takes for security
to usher you off the property.
For Wal-Mart is an open-air prison for employees and if you
work a third shift on cleanup duty, they lock you in and nothing
short of a fire can open a door until 7 am.
America would be a far better place without Wal-Mart. Main streets coming
back, broader tax bases, American jobs, less consumption of needless crap,
local food production. Just ask the simple question; What does Wal-Mart
sell that you absolutely need that you can't get from a local shop???
Anything??? I didn't think so.
Don't forget Lowes, Home Despot, Staples, Target, or ANY franchise. ANY!!! The trend is past the tipping point and we can start saying goodbye to small business in general. I'm glad I'm aging and not a child facing this horrific state of a country!
This has to give pause for thought in nations where so many people believe sexual discrimination a thing of the past.
There no Job Grade or activity I can conceive of at a Wal Mart wherein one can make any sort of claim that a Male has better qualifications or aptitude for the work then a female yet the "promotions and higher pay rates go to males" seems standard operating procedure.
If it happens at Wal Mart it happens elsewhere. WHY?
I worked for Wal-Mart (Sam's Club) for my final eight years before retirement. Perhaps the store I worked in was other than the usual but I was payed, as a meat cutter, a higher salary than most of the other meat cutters in my town.
Many of the team leaders in different sections of the store were women and I never heard them complain of low wages. The manager of the meat department in which I worked was a woman and was both capable and appropriately compensated. The general manager of the store was also a woman, a very capable and well compensated black woman.
I continue shopping at Wal-Mart and Sam's for the simple reason that I shop at places I can afford. If I were extremely wealthy and could afford to shop anywhere I would probably still visit my friends at Sam's and support them with my purchases.
Personal experience is important and your comment appreciated. Re "the simple reason that I shop at places I can afford", that doesn't fly. You can be Very Low Income (on the federal income scale), absolutely never go to Walmart, and have a very good life.
The Wal Mart employees here in CA get considerably less than their fellows in other stores, so I won't cross the door.
Walmart has little to fear. After dragging through the courts for another few years the SCOTUS will slap this suit down if any award is large enough to actually be noticed by the Walton family or this sort of thing seems to be catching on.
Sprawllyworld
I miss the local hardware stores, the lumber yards, clothe stores, shoe stores, the mom and pop grocery stores and gas stations with bays.
Don't get me started on the blue plastic bags caught on fences and hanging from trees.
Sometimes I miss them too, but you know I didn't get much better help there consistently than I do at HomeDepot... Mixed feelings here...
OTOH? What the heck are you doing discriminating against women at a store in the 21st century? Aside from wrong and illegal it is simply dumb. When you have some physical requirement like having to carry a 200 body 100' through a wall of flame, you may (may!) make some argument, but this is a stupid store? How could a woman produce any more or less on average than a man or visa versa?
Simply stupid bad management!
What politicians that we know are on, or were on, the Wal-Mart Board of Directors? Google it.
This class action lawsuit makes much too much sense. There's no way the Supremes will let it stand.
It's not likely to ever get there. Can you imagine what it would cost Walmart to be trumpeted as the world's largest sex offender for month after month?
I have never crossed the threshold of any wal-mart, and I never will. The whole business is a cancerous blight, for the entire country and the small business owner. ( Do the tea partiers know this yet?)
I do like flipping letters around...so aha! Their real name is MAL WART.....a .bad, wart growth virus on the people and the economy.
Stardust:
Thank you for "MAL-WART"! You may have hit on a True Name.
If Sioux Rose is around, she can enlarge on this.
Otherwise, see:
http://en.wikipedia.org/wiki/True_name
If a full cart sat in an empty walmart, would anyone notice?
If an imaginary cart came in to a real walmart, would it still have political purchasing power?
Is walmart any different than capitol hill?
Then why can't i leave my cart full of unwanted military entitlements and a global empire?
And as you checkout, it will all seem so natural, payment, smiles, bagging and customer fleecing.
So in the back shed, we keep huge bags of fleeces, one from
each customer.
And from the data footprint of the products bought, and their
frequency, we know whether the person is single, married, and all of these things compel them to need some products, like baby food, beer and dog food.
And it always seems odd that your favorite beer is always easy to find, as our computers guide you to your food pellet, rat in a maze.
My attorney is one of the attorneys on this suit.
Go, Steve, go!
I remember when Wal-Mart first opened they advertised clothes made in the U.S.. I went there, before I knew their reputation, and looked at every coat section, trying to find something made in America. I did not find one coat made in the U.S. They were smart tricking people into coming into there store then changing their policy or were they lying? I have not shopped there since.
First of all, I do not understand this "Don't shop at Walmart because ... " radical hatred.
Bear with me, please.
How do you think Family Dollar, Dollar General, K-Mart, etc., manage to sell you things so cheap, as well?
They do the same things Walmart does, only because they're not as big as Walmart, no one brings it up.
That said, to avoid the issue about supporting the overworked underprivileged foreign workers, China, etc., and "buy American," is almost impossible.
Do you realize that NOT ONE television is made in the USA, at all? No one brings THAT up, ever, while they're out buying their new flat TV, but it's true.
Lastly, many of us have fallen on hard times (me: disabled/oxygen) and are financially stressed. We cannot afford to NOT shop at Walmart, or their competitors.
Having laid that groundwork in what I want to say, I don't see the big victory in any of this, in this article.
There WAS a time it WOULD have been a major victory, that we could have counted on courts throughout the land following a judgment like this, and something like this changing policies nationally in other corporations.
Those days seem to be long gone, and I do not know why.
There are comparisons to be made between Walmart and other discount retailers, but the problem with Walmart is its size. Walmart sets the standards that others have to sink to. Walmart is China's seventh largest trading partner--Walmart, not the US. Walmart has put many an American family business under.
It is in good part because of Walmart that so much of what we use is made abroad (though there are TV's manufactured in the US), because Walmart will force its suppliers to manufacture abroad in order to give Walmart a lower price. Those who don't care about the hegemony of Walmart over US retail say "I guess we just want low prices".
In spite of what people say or think, you're wrong to believe that you have to shop at Walmart. There are other discount options, and Walmart does not have the lowest prices on everything all the time.
Is Wal-Mart too big and self-important to sue?
Sue the hell out of Walmart, they support vigilante gang stalking freak show, and have their own private army of torture freaks that try to intimidate and harass their employees and citizens in their community's.
They earn billions in profits and pay their employees poorly, shame on them,
class action suits only help the corporations who are sued, and the lawyers doing the suing
they never help the class they are supposed to be helping
I am proud to say I am an ex Walmart employee and am loving it. Working there was the most stressful job I have ever had to endure. Constant nit-picking, belittling,and made to always know I was replaceable. I hated it as it made me an ugly person inside. I vow to never enter another Walmart and to do all in my power to let others know the mental abuse and stress that comes with this low paying job. I even started school and was punished for 2 months by having my hours cut from 38+ to 21 as if being forced to quit. I'm a single mom with 3 kids and was forced to live like a pauper and have my utilities shut off just because I wanted to better myself. I was told that I needed to reevaluate my priorities. Walmart is evil and I would love to see it fail in my life time.
Don't you know, shopping is soooo last century? Less is more is the new mantra.
Thanks to WalMart, KMart and all those other big box stores that sold their souls and loyalty for money and pushed "free trade" (read "free ride" for the wealthy international exploiters), the manufacturing base in the USA has been pretty much destroyed. We are turning into a third world country with a tiny percentage earning and owning most of the wealth and the vast majority struggling to pay the bills.
As for me, I never shop at Walmart, try to avoid Big Box stores, and limit my shopping to the bare essentials, or I shop at second hand stores. I read labels and put back as much as possible any and all items "made in China."
If more people did the same and stopped supporting businesses that rake in corporate welfare while outsourcing precious jobs, maybe, just maybe, we could begin to turn things around.