Victory for large employers

The Supreme Court in Wal-Mart v.Dukes reversed the Ninth Circuit's certification of a class of aggrieved females claiming sex discrimination by Wal-Mart. The court unanimously rejected certification under Rule 23(b)(2) finding individual backpay claims were not incidental to any requested injunctive or declaratory relief. By a 5-4 majority the court also rejected certification under Rule 23(a)(2) because the many claims did not involve common questions of law or fact. This decision likely means certification of discrimination claims for class actions will be significantly reduced to those fitting within this narrow interpretation of the Rule. Very good news for large employers.

Big retailer faces big class suit

In an en banc decision, a sharply divided (6-5) federal appeals court (9th Cir.) has determined that Wal-Mart, the world's largest private employer, must defend a class action gender discrimination suit filed by six women. The class action involves as many as 1.5 million current and former employees. The allegations include claims that women are paid less than men working the same jobs and that women are not promoted as often as or as soon as males.