PROFESSIONALLY SPEAKING
U.S. Supreme Court Rules for Wal-Mart by Davis & Kuelthau, s.c. Tony Renning
920.233.6050
If you have a particular labor/employment law question, please forward your question to Mr. Renning at info@ newnorthb2b.com. If he responds to your email in a future issue, your name and company will be withheld to preserve your privacy.
Reader Question: What impact will the recent decision by the United States Supreme Court in Dukes v. Wal-Mart have on employers, if any? Tony Renning: The Supreme Court recently rejected the largest-ever employment discrimination case in U.S. history. Betty Dukes et al. v. Wal-Mart Stores, Inc., No. 10-277 United States Supreme Court (June 20, 2011). The case involved about 1.5 million current and former female Wal-Mart employees, both salaried and hourly, from all 50 states, who alleged Wal-Mart discriminated against them on pay and promotion decisions. The female employees sought judgment against Wal-Mart for injunctive and declaratory relief, punitive damages and back pay because of Wal-Mart’s alleged discrimination against women in violation of Title VII of the Civil Rights Act of 1964. They claimed local managers exercised their discretion over pay and promotions disproportionately in favor of men, which had an unlawful disparate
Sean Fitzgerald
Publisher & President
sean@newnorthb2b.com
Carrie Rule
Sales Manager
carrie@newnorthb2b.com
Kate Erbach
Creative Director
kate@newnorthb2b.com
Contributing writers
Cheryl Hentz Lee Marie Reinsch
Chief Financial Officer
Vicky Fitzgerald, CPA
impact on female employees. There were two primary issues before the Supreme Court: (1) whether the order certifying the class conformed to the requirements of the Federal Rules of Civil Procedure (FRCP); and (2) whether claims for monetary relief could be certified under the FRCP. The two issues are at the heart of most class action lawsuits and resolution of these issues often casts the die for success or failure in the prosecution or defense of discrimination lawsuits. The Supreme Court by a 5 to 4 majority concluded the class action could not proceed because the female employees had failed to demonstrate “commonality” under the FRCP, which required them to prove there are “questions of law or fact common to the class.” Additionally, the court unanimously concluded the employees’ back pay claims could not be properly certified under the FRCP – sparing Wal-Mart from having to potentially pay billions of dollars in back pay. The impact of the decision is significant
NEW NORTH B2B is published monthly by WINNEBAGO B2B LLC for $20 per year or $3.95 for a single issue. A single complimentary subscription is offered to all members of the Fond du Lac Area Association of Commerce, Green Bay Area Chamber of Commerce, Heart of the Valley Chamber of Commerce, and the Oshkosh Chamber of Commerce. Printed by Digicorporation, 120 Lake St., Neenah, WI 54956 POSTMASTER: send address changes to: WINNEBAGO B2B LLC 923 S. Main St., Oshkosh, WI 54902. Bulk-rate postage paid at Oshkosh, WI. Reproduction of any contents of NEW NORTH B2B without express written permission of its publishers is strictly forbidden. The appearance of any advertisement or product information does not constitute endorsement of any product or service by WINNEBAGO B2B LLC. Copyright 2011.
Contact us: P.O. Box 559, Oshkosh, WI 54903-0559 • 920.237.0254 www.newnorthb2b.com
for employers. The decision establishes how much class members must have in common for a class action to be certified and the extent to which claims for money damages can ever be certified. For advice and counsel defending employment discrimination claims, contact Tony Renning at (920) 232-4842 or trenning@dkattorneys.com or any other member of the Davis & Kuelthau Labor and Employment Team. Tony Renning is an attorney in the Oshkosh office of Davis & Kuelthau, s.c. (219 Washington Avenue). Mr. Renning provides counsel to private and public sector employers on a wide variety of labor and employment law matters. This article is intended to provide information only, not legal advice. For advice regarding a particular employment situation, please contact a member of the Davis & Kuelthau, s.c. Labor and Employment Team.
Green Bay
Fox Cities
Oshkosh
Fond du Lac NEW NORTH B2B l JULY 2011 l 5