Can a class-action lawsuit contain as many as 1.5 million employees? That’s a question the Supreme Court will soon answer.
Six women have filed suit against Wal-Mart alleging the company discriminates against women when it comes to compensation and promotional opportunities.
And now the attorneys for those women are trying to pursue discrimination claims in a class-action lawsuit for more than 1.5 million women who worked at Wal-Mart and Sam’s Club stores since 1998.
The Supreme Court must decide whether a single suit is proper when it comes to charges that spread across nearly 3,400 stores nationwide.
The U.S. Court of Appeals for the 9th Circuit in California said the class-action suit could go forward. But Wal-Mart appealed and the Supreme Court agreed to hear the case.
A new precedent
As important as the outcome of the discrimination claims will be, what HR and Benefits pros should really be watching is whether the court certifies this as a class-action suit — 1.5 million-plus members strong.
Legal experts say a class-action suit of that magnitude would put enormous amounts of pressure on the company to settle — and the sky could be the limit on the amount Wal-Mart would end up paying.
A ruling in favor of the employees could also set a new precedent for how expansive class-action suits against businesses, especially large employers, can become.
Judge’s dissent
The decision made by the U.S. Court of Appeals was upheld by a 6-5 vote, but one of the judges wrote a dissent that the Supreme Court is sure to weigh in on.
Chief Judge Alex Kozinski noted that the class included women who held completely different jobs in different regions of the U.S. In addition, they were supervised by both male and female superiors.
As a result, he said he believes the more than 1.5 million female employees “have little in common but their sex and this lawsuit.”
The class members are collectively seeking billions of dollars in monetary relief.
The Supreme Court will hear the case this spring. We’ll keep you posted.
Do you think this case should proceed as a large class-action lawsuit? Share your opinions in the Comments Box below.
