Dive Brief:

• U.S. District Judge Susan Illston in San Francisco on Wednesday declined to penalize Wal-Mart $80 million as requested by truck drivers in a lawsuit filed against the retailer, the Associated Press reports.

• A federal jury ruled last November that Wal-Mart failed to properly compensate some 850 of its truck drivers under its own terms of employment and against California law, and recommended $55 million in backpay. 

• The suit alleges Wal-Mart failed to pay hundreds of drivers minimum wage in California for some tasks, but the judge ruled that the retailer acted in good faith in its understanding of California law. 

Dive Insight:

The truck drivers filed the lawsuit in 2008, not long after Wal-Mart had instituted a compensation plan that paid them according to mileage and activity rather than hours worked. Truckers argued the scheme violated California law. Attorneys for the drivers, who had hauled goods for Wal-Mart between October 2005 and October 2015, were seeking damages of $72 million. 

Illston previously agreed that Wal-Mart violated California law for failing to pay its truck driving employees minimum wage. But in rejecting the additional damages, she apparently doesn’t agree that Wal-Mart acted willfully in compensating drivers against state law, and agreed with Wal-Mart’s argument that its drivers enjoy some of the highest wages in the industry.

"While we still disagree with the jury’s verdict in the case, we’re pleased the judge declined to award any additional penalties," Wal-Mart spokesperson Randy Hargrove told Retail Dive. "Our drivers are among the highest paid in the industry, earning from approximately $80,000 to over $100,000 per year. We strongly believe that our truck drivers are paid in compliance with California law and often in excess of what California law requires. Wal-Mart is a great place to work, as demonstrated by the fact that more than 90% of our drivers have been with the company for more than 10 years."

Attorneys for Wal-Mart originally argued that the drivers’ compensation included payment some tasks that took a few minutes but were too small to require separate compensation. Wal-Mart attorney Scott Edelman additionally noted that while drivers were paid for overnight layovers, they were free to go to the movies or exercise.