Court strikes down 1.5M member class-action suit

The pro-employer verdict in this highly publicized lawsuit against Wal-Mart should bring a sigh of relief to employers everywhere.

In a discrimination case against retail giant Wal-Mart, the Supreme Court struck down a bid to pursue a class-action lawsuit that would’ve involved 1.5 million female workers.

The court, in a 5-4 decision, ruled that the employees’ attorneys could not prove workers’ claims were uniform enough to warrant class-action protection.

Initially, six women accused the retail giant of not providing female workers with the same compensation and promotional opportunities as male employees.

The attorneys of those six women then attempted to pursue discrimination claims in a class-action lawsuit for more than 1.5 million women who worked at Wal-Mart and Sam’s Club stores dating back to 1998.

This verdict is especially important for larger corporations. However, it’s also good news for businesses of all sizes.

Reason: The court’s ruling in this case offers all employers some protection from employees banding together and coming forward with a class-action lawsuit.

It also raises some important questions about how much employees must have in common to get class-action protections.