Articles

Featured Verdict: Walmart Ordered To Pay $102 Million For Wage And Hour Violations Despite Paying Employees All Proper Overtime Wages Due

On May 31, 2019, a Federal Judge in the Northern District of California awarded a class of Plaintiff’s approximately $102 million in statutory damages under Labor Code §226(e) and PAGA penalties, and PAGA penalties for violation of Labor Code§226(a)(6).

Labor Code §226 requires that all paystubs issued contain certain information including the number of hours an employee worked for overtime and the rate at which they were paid for overtime. If an employer pays a non-discretionary bonus, then it must also increase the overtime rate to reflect that bonus, as it increases the “regular rate.”

In this case, Walmart correctly identified how many hours an employee worked and the overtime rate at the time the paystub was issued. However, Walmart also provided employees certain bonuses at the end of the quarter, which required Walmart to increase the prior rate of all overtime hours worked. Notably, Walmart properly paid the entire amount of the bonus and properly increased all retroactive overtime hours worked to reflect the employee’s bonus. However, in showing how an employee was provided this increase to prior overtime hours, Walmart merely listed the lump sum owed. It did not identify how many hours were worked, or what the increase in the regular overtime rate was. Similarly, Walmart did not reflect this information on employee’s final paystub at or near their termination.

As a consequence, Walmart became liable for approximately $102 million, not because it paid its employees incorrectly, but because its paystubs were not fully compliant with California law.



  • Extensive Business Knowledge
    Regardless of the complexity of your case, you can trust that your legal matters will be in competent hands when you turn to Poole Shaffery.
  • Proven Track Record
    Our team of accomplished business attorneys has consistently delivered positive outcomes for our clients, resolving complex business matters with skill and expertise.
  • Experience and Reputation
    Poole Shaffery boasts a team of Santa Clarita business attorneys with strong reputations among judges and fellow lawyers, including AV Preeminent® rated professionals and Super Lawyers® honorees.

Contact Our Firm

We’re Here to Listen
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.
  • By submitting, you agree to be contacted about your request & other information using automated technology. Message frequency varies. Msg & data rates may apply. Text STOP to cancel. Acceptable Use Policy