U.S. Supreme Court Shuts Down Retail Employee Class Action

On June 20, 2011 the United States Supreme Court released its reasons in Wal-Mart Stores Inc. v. Dukes, a landmark decision overturning two lower court decisions to certify an employment discrimination claim against Wal-Mart. 

The representative plaintiffs represented 1.5 million current or former female Wal-Mart employees employed by Wal-Mart from 1998 onwards. They were alleging that the company discriminated against them on the basis of their gender by denying them equal pay or promotions in violation of the U.S. Civil Rights Act. If the plaintiffs had been successful, Wal-Mart could have faced billions of dollars in potential liability.

Although the plaintiffs conceded that Wal-Mart did not have an express corporate policy against the advancement of women, they claimed that Wal-Mart's policy of giving their local managers' discretion over pay and promotions favoured men over women.