Chamber opposes class action status in Wal-Mart sage case

09 Jan '07

2 min read

Individual claims for overtime pay are not appropriate for class action certification under federal civil procedure rules, according to an amicus brief filed by the National Chamber Litigation Center (NCLC).

"Efforts to convert overtime claims into sprawling class actions seeking hundreds of millions of dollars are inappropriate because of the highly individualized nature of these claims," said Robin Conrad, NCLC senior vice president.

"The district court properly recognized the need to examine the work performed by each member of the class and appropriately ruled against granting class action status."

At issue is whether 2,750 Wal-Mart assistant managers in California can invoke class action status in their claim that the company intentionally exempted them from overtime pay and other benefits non-exempt employees receive under California law.

In Sepulveda, et al., v. Wal-Mart Stores Inc, NCLC urges the U.S. Court of Appeals for the Ninth Circuit to uphold the lower court's ruling denying class action certification on the grounds that each claim is too individualized, and that the class would not be properly served because over half of the potential class members no longer work for the company.

"Class action certification can only be granted where there is a uniform claim of wrong-doing and that is not the case here because of the alleged overtime violations," Conrad stated. "It's also inappropriate because 1,500 of those employees who filed the claim no longer work for Wal-Mart."

NCLC, the public policy law firm of the U.S. Chamber of Commerce, is a membership organization that advocates fair treatment of business in the courts and before regulatory agencies. The U.S. Chamber of Commerce is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

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