| Wal-Mart could see
class action
By Stephanie Armour, USA TODAY
Wal-Mart Stores will be in court Wednesday for a hearing to
determine whether a sexual discrimination lawsuit against the retail
giant will be certified as a class action covering more than 1.5
million current and former female employees.
The lawsuit filed in June 2001 alleges that the
world's biggest retailer discriminated against women in pay and
promotions. If the case is allowed to proceed with class
certification, lawyers say it would become the largest civil rights
lawsuit ever, covering a class of workers as large as the population
of Philadelphia.
It could also have sweeping ramifications. If
Wal-Mart is forced to change its pay structure, it could cause other
retailers to follow. The lawsuit could cover all female employees
since December 1998.
"The potential damages are huge," says Perry
Binder, a legal studies professor at Georgia State University in
Atlanta. "Other businesses will watch this very closely."
Wal-Mart officials say they don't expect the
case to be certified as a class action. Lawyers will argue for the
certification today in San Francisco, but federal Judge Martin Jenkins
is not expected to make a decision immediately.
A lawsuit against Denny's in 1994 is the
next-largest civil rights case, lawyers say, involving hundreds of
thousands of plaintiffs in a racial discrimination claim.
For class certification to occur, lawyers for
the six former and current workers claiming discrimination must show
that their allegations are representative of discrimination faced by
all female Wal-Mart employees in general.
"We don't think they can even come close to
delivering that proof," says Sarah Clark, a spokeswoman at Wal-Mart.
"Wal-Mart is a great place for women to work, and isolated complaints
do not change that."
The retailer is objecting to class
certification on several grounds, including the sheer size of the
proposed class, according to an opposition brief filed by Wal-Mart.
Lawyers seeking class-action status say
Wal-Mart's female employees are paid less than men who hold the same
positions. They also say there is no objective criteria for
determining who moves into management and no meaningful application
process.
"Our goal is to change Wal-Mart," says Brad
Seligman, one of the lawyers representing the workers.
If Wal-Mart loses, he says, "It will send a
message throughout the retail industry. If Wal-Mart can be taken down,
anyone can."
Cases certified as class actions often settle
before they go to trial. Companies have paid millions of dollars in
similar employment lawsuits involving many fewer employees. In 1997,
Home Depot settled a sex bias lawsuit for $104 million for a class of
more than 25,000 women.
|