Class Action Against Wal-Mart Announced by Tousley Brain Stephens Includes Estimated 40,000 Employees in State of Washington

SEATTLE--(BUSINESS WIRE)--Oct. 8, 2004--A King County Superior Court Judge ruled that a large class action lawsuit against Wal-Mart stores in the State of Washington may proceed, opening the way for some 40,000 current and former employees to participate in the lawsuit, according to the Seattle law firm Tousley Brain Stephens.

The lawsuit alleges that Wal-Mart has "engaged in a systematic scheme of wage abuse against its hourly paid employees in the State of Washington." The illegal abuses include off-the-clock work for which employees were never paid, missed meal and rest breaks and altered time records.

According to the legal complaint, Wal-Mart has a strict No Overtime policy which it enforces by disciplining employees who work more than 40 hours per week without prior authorization. Understaffing of the stores, however, leaves employees with too much work to complete in 40 hours. As a result, thousands of employees work for free (off the clock) and miss meal and rest breaks rather than risk losing their jobs.

Plaintiff Georgie Hartwig worked for the Colville, Washington, Wal-Mart store for six years, and estimates that she worked from 2 to 5 hours over her "clocked in" time every week, doing work for which she was never compensated. In addition, she claims her work load was so heavy that she was often not able to take her meal and rest breaks. She said she also had time "disappear" when Wal-Mart manipulated her time records. Ms. Hartwig's story has been echoed by many other current and former Wal-Mart employees.

Seattle attorney Beth Terrell (from the firm Tousley Brain Stephens) blames Wal-Mart's "bottom-line culture that encourages managers to treat their workers illegally. Wal-Mart's managers have financial incentives to suppress store expenses -- and they do so on the backs of their hourly workers."

Employees report attending mandatory meetings and performing computer-based training while off the clock. "Hourly managers, too, are often not paid for work they do. They are encouraged not to record their time actually worked, and to forgo rest and lunch breaks in order to keep costs down. Wal-Mart hides behind written policies that purport to forbid these illegal labor practices, while at the same time fostering a culture in which these unlawful labor practices necessarily occur," according to attorney Terrell.

Terrell continues, "Perhaps most disturbing was our analysis of Wal-Mart's time-keeping records, which revealed a number of ways that Wal-Mart manipulated its employees' time, depriving them of wages they had earned."

Unlike other class action lawsuits that require class members to join, the order signed by King County Superior Judge Terry Lukens creates a class that automatically includes all current and former hourly paid employees.

The Court appointed Tousley Brain Stephens PLLC, and Lieff Cabraser Heimann and Bernstein LLP as counsel for the class.

EMPLOYEES WITH QUESTIONS may call 1-800-299-8219, or go to www.tousley.com for further information. Media representatives wishing a copy of the complaint or signed order may contact attorney Beth Terrell at 206-682-5600.