Basco v. Wal-Mart Stores, Inc.

216 F. Supp. 2d 592, 2002 WL 975674
CourtDistrict Court, E.D. Louisiana
DecidedMay 9, 2002
DocketCIV.A.00-3184
StatusPublished
Cited by26 cases

This text of 216 F. Supp. 2d 592 (Basco v. Wal-Mart Stores, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Basco v. Wal-Mart Stores, Inc., 216 F. Supp. 2d 592, 2002 WL 975674 (E.D. La. 2002).

Opinion

ORDER AND REASONS

DUVAL, District Judge.

Before the Court is plaintiffs’ motion for class certification pursuant to Rule 23 of the Federal Rules of Civil Procedure (rec. doc.37) and defendant’s Partial Motion for Summary Judgment (rec.doc. 42). Plaintiffs 1 filed suit against defendants in state court on September 5, 2000. Defendants subsequently removed the case to federal court and plaintiffs’ motion to remand was denied (rec.doc. 18).

Generally, plaintiffs allege that Wal-Mart and Sams stores (collectively referred to herein as “Wal-Mart”) have engaged in widespread wage abuses including: (1) providing too few rest and meal breaks and (2) requiring employees to “work off-the-clock” and refusing to pay them for all hours worked. 2 Specifically, plaintiffs’ petition asserts breach of contract and unjust enrichment causes of action against defendant. 3 Because so many plaintiffs claim to have been affected by defendant’s conduct, they have sought to have the following class certified:

All present and former employees of Wal-Mart and Sams stores who are or who have been employed at one of the *596 89 stores in Louisiana since September 5, 1990 and were (1) forced to work off the clock and/or (2) deprived of meal or rest breaks.

Plaintiffs estimate that the class will consist of approximately 100,000 employees.

Currently pending before the Court are: (1) plaintiffs Motion for Class Certification (rec.doc. 37), (2) defendant’s Partial Motion for Summary Judgment (rec.doc.42), and (3) defendant’s Motion to Limit the Testimony of plaintiffs Statistics Expert, James R. Thompson (rec.doc. 52). Oral argument was heard on January 9, 2002. After consideration of the memoranda, relevant law and oral presentations, this Court DENIES plaintiffs motion for class certification and DENIES defendant’s motion for partial summary judgment for the reasons that follow.

BACKGROUND

All applicants for employment with Wal-Mart are required to review and fill out an application for employment which includes the following language:

I further understand that no one other than the President of Wal-Mart Stores, Inc. or Vice President of its People Division has the authority to enter into an employment contract or agreement.

Hired employees are required to attend an orientation session conducted by a personnel manager during which they are inundated with Wal-Mart’s policies and procedures. Employees are also provided with an employee handbook and are required to sign the following acknowledgment:

This handbook is intended solely as a general information guide to let Associates know about the current policies and programs Wal Mart has in place. The policies and benefits presented in this handbook are for your information and do not constitute terms or conditions of employment.... This handbook is not a contract. 4

The handbook references rest and meal breaks and work performed off-the-clock and states that:

Associates will be provided break and meal periods during their scheduled work shift. Associates are paid for up to two break periods per work shift. No Associate should work for over six hours without taking at least a 30 minute meal period. Remember to clock in and out for meal periods.
* * * * * *
This is one of your responsibilities. Our expectation is very clear. Always clock in at the beginning of the workday and at other appropriate times; ask your supervisors for specific details. If you forget to do this, notify your Supervisor immediately so corrections can be made. Your hard work is appreciated, and we want to pay you for this work. Remember that working off-the-clock is not only against Wal-Mart policy — it is against the law. Always clock in when you are working — Always! There are no exceptions. 5

While plaintiffs never signed an employment contract with defendant, they contend that: (1) Wal-Mart entered into oral contracts with plaintiffs, through the personnel managers who hired them, and agreed to provide certain rest and meal breaks each day and to pay them for all hours they worked, (2) the contractual agreements between plaintiffs and defendant were made at the time of hiring and the terms of each contract are evidenced in Wal-Mart’s employee handbook and other orientation materials, and (3) Wal-Mart breached its contractual obligations *597 throughout its Louisiana stores through a “uniform policy” that requires employees to miss rest and meal breaks and work off-the-clock and as a condition of employment.

Should the Court certify the class, plaintiffs intend to use several forms of evidence to prove defendant’s liability and to establish' the amount of damages incurred. First, to support its contention that contracts were formed between plaintiffs and defendant, plaintiffs will introduce: (1) individual testimony as to the “oral terms” of the “contracts” that were allegedly agreed upon when they were hired, (2) the employee handbook, and (3) other orientation materials. To prove defendants breached the contractual agreements to provide rest and meal breaks and to prohibit off-the-clock work plaintiffs will offer: (1) representational testimony, (2) documentary evidence, (3) expert testimony and (4) statistical evidence.

For example, in order to prove plaintiffs missed lunch and rest breaks, defendants will rely on statistical analysis gleaned from an expert’s review of Wal-Mart’s Time Clock Archive Reports, Time Adjustment Requests, and Time Clock Punch Exception Reports for hourly employees who were employed during the applicable time frame. And, to support plaintiffs’ testimony that they were required to work off-the-clock, plaintiffs will offer statistical evidence compiled by a professional polling firm. The polling firm plans to administer a survey to a random selection of names drawn from Wal-Mart’s employee records and determine the average number of hours per week worked off the clock to a 95% or higher confidence level. The results gleaned from the statistical analysis will also be used to establish the aggregate amount of damages owed to plaintiffs.

Defendants contend that:- (1) Wal-Mart’s policy is to provide rest and meal breaks and never to allow and employee to work off-the-clock, (2) there was no written or oral contract by which defendant was obligated to provide paid rest and meal breaks, (3) the employee handbook (which references to rest and meal breaks) contains a disclaimer that specifies it is not a contract, (4) Louisiana law is clear that an employee handbook can not establish a contractual obligation 6

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Bluebook (online)
216 F. Supp. 2d 592, 2002 WL 975674, Counsel Stack Legal Research, https://law.counselstack.com/opinion/basco-v-wal-mart-stores-inc-laed-2002.