Wal-Mart's lawsuit woes increase

Wal-Mart Stores Inc. agreed to pay more than $11.7 million to settle a gender discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC).

In addition, a federal appeals court has certified the largest class-action employment lawsuit in U.S. history over alleged gender bias in pay and promotions.

The EEOC lawsuit accused Wal-Mart of regularly hiring male workers for warehouse jobs at its London, Ky., distribution center from Jan. 1, 1998, through Feb. 15, 2005, and denying jobs to equally or better qualified female applicants. The lawsuit was filed in August 2001.

In this case, Wal-Mart and the EEOC signed a 5-year contract that stipulates the retailer must hire women for the next 50 order-filler positions, offer women half of the following 50 positions and a third of the positions thereafter.

The settlement includes $8.41 million of back pay and $3.29 million of compensatory damages, various fees and employer taxes.

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In its other legal matter, a 6-5 ruling by the San Francisco-based 9^th U.S. Circuit Court of Appeals allows the multiparty litigation to move ahead to trial. Wal-Mart has the option of appealing May 10's ruling to the U.S. Supreme Court.

At the center is whether more than 1 million current and former Wal-Mart employees can band together in their claims of discrimination.

The suit alleges that women were paid less than and were given fewer opportunities for promotion than their male counterparts. They seek back pay and punitive damages. The plaintiffs state that women comprise more than 70 percent of the retailer's hourly work force but make up less than one-third of its store management.

The appeals court concluded that there is enough merit in the claims to proceed to a trail on a class-action track. Wal-Mart protested the size of the class action, saying it would be too onerous to litigate.