Employees reported that they were not compensated for the time spent completing COVID-19 screenings before clocking in during pandemic protocols.
The $2.5 million settlement in a class-action lawsuit against Walmart Inc. addresses claims that the retail giant failed to compensate employees for time spent in COVID-19 screenings and did not keep accurate records of related work time during the pandemic.
The lawsuit, which has been ongoing for over three years, involves approximately 81,000 employees who were employed at 112 Walmart locations across Arizona.
Walmart enforced a COVID-19 screening policy for employees in its Arizona stores from April 10, 2020, to Feb. 28, 2022, which required associates to undergo a multi-step screening process before commencing their shifts, as per court documents.
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Walmart stated that it was not aware of any unpaid time, and argued that there was a good faith dispute regarding wages, claiming that its compensation policy covered screening time and any oversight was unintentional.
Following extensive legal proceedings and a full day of mediation, the parties came to a settlement agreement in February, as per the approved settlement.
This initial agreement needed court approval, which involved sending direct mail notices to 97.6 percent of the class members. Out of over 81,000 notices sent, only 48 class members chose to opt out, with just one formal objection, according to the settlement approval notice.
On July 15, Judge Brnovich conducted a final fairness hearing to determine the fairness, reasonableness, and adequacy of the settlement, and after review, the court granted final approval of the settlement.
Judge Brnovich acknowledged the strength of the plaintiffs’ case, noting that it had withstood motions to dismiss and for summary judgment, and that the settlement was reached after a contested motion for class certification.
The $2.5 million settlement amount represents about 50 percent of the potential post-summary judgment claims of the plaintiffs, as per court records.
The funds will be distributed to class members based on the number of weeks they worked during the class period from April 10, 2020, to Feb. 28, 2022. No funds will revert back to Walmart, and any unclaimed amounts will be redistributed to the class members.
The court also approved $625,000 in attorneys’ fees and $118,160.55 in litigation expenses for class counsel.
In addition, the lead plaintiffs, Ms. Arrison and Mr. Smith, will each receive a $5,000 service award for their representation of the class.
The settlement enables Walmart to resolve the litigation without admitting any wrongdoing or liability, while offering compensation to the impacted employees.
A spokesperson for Walmart informed The Epoch Times that the company is investigating the matter and will provide a statement promptly.
