Federal judge: Wal-Mart owes drivers back pay
SAN FRANCISCO – Wal-Mart could be on the hook for more than $100 million in back pay after a federal judge ruled the company failed to pay California minimum wage to truck drivers for activities that included inspecting and washing their trucks, an attorney said Wednesday.
The ruling came after the company argued that the drivers are paid for particular activities that include those tasks.
U.S. District Judge Susan Illston sided with the drivers in her May 28 ruling, saying activities that are not compensated separately cannot be included in tasks that are paid for by the company.
“These guys are owed the money, so the sooner they get paid, the better,” said Butch Wagner, whose firm represents 720 past and current Wal-Mart drivers.
Wal-Mart spokesman Randy Hargrove said the Arkansas-based company will keep fighting the wage claim. Its drivers are among the best paid in the industry, with some making more than $100,000 a year, he said.
The case is set to go before a jury in April to determine damages, Wagner said.
$15 minimum wage gets final OK in Los Angeles
LOS ANGELES – Officials have given final approval to an ordinance that makes Los Angeles the largest city in the U.S. to gradually raise the minimum wage to $15 an hour.
The City Council voted 12-1 in favor of the increase Wednesday and forwarded it to Mayor Eric Garcetti. His office said he plans to sign it Saturday.
The ordinance boosts the wage to $10.50 in July 2016, followed by annual increases to $12, $13.25, $14.25 and $15.
MINNEAPOLIS – A dust-up over pepper has landed in federal court in Minneapolis.
A small Minnesota producer, Watkins Inc., filed a lawsuit Tuesday against giant spice maker McCormick & Co., claiming it has misled consumers by secretly cutting the amount of pepper in its tins by 25 percent, without reducing the price or size of the container.
Winona-based Watkins has been trying to expand its spice business in recent years.
In its lawsuit, Watkins claims McCormick has violated federal and state laws regarding deceptive trade practices and has misled consumers and food retailers. The Star Tribune reports that Watkins says McCormick has cut the amount of pepper in its spice tins by half, to 2 ounces.
McCormick spokeswoman Lori Robinson said the company has reduced the net weight of its black pepper and has been forthright about the changes.
“We followed industry standard procedures and were transparent about this change, clearly updating the net weight on packaging, issuing a UPC code change and notifying retailers well in advance,” Robinson said in a statement.