Walmart Shorted California Workers on Sick Time Pay, Class Action Claims

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Walmart faces a proposed class action that claims the retail giant failed to pay California workers at the proper rate for sick time.

Filed against Walmart, Inc.; Wal-Mart Associates, Inc.; and Wal-Mart Stores, Inc., the lawsuit alleges the defendants overstepped California labor laws by failing to count workers’ non-discretionary remuneration, including “MYSHARE INCT” wages, as part of their regular wages when paying out sick time.

According to the lawsuit, California Labor Code requires that paid sick time for non-exempt employees be calculated by dividing the worker’s total wages, not including overtime pay, by their hours worked in the full pay periods of the prior 90 days of employment.

Walmart, however, failed to use workers’ regular pay rates when calculating sick time, choosing instead to pay them a base rate that left out non-discretionary remuneration, according to the complaint. The suit claims that although workers earned “MYSHARE INCT” wages and other incentive pay on top of their hourly rates during certain pay periods in which they were paid for sick time, Walmart failed to account for the extra pay as part of their regular wages.

The lawsuit, which was recently removed to California’s Southern District Court from San Diego County Superior Court, looks to represent all non-exempt California employees whose employment with Walmart ended anytime since April 6, 2017 and were paid sick pay during the same period in which they earned non-discretionary wages such as “MYSHARE INCT” pay.

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