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Sheppard Mullin Helps Overturn $102 Million Dollar Verdict | Sheppard Mullin Richter & Hampton LLP

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A former Wal-Mart employee had his $102 million dollar verdict overturned in a recent win for California employers. Roderick Magadia, the former employee, brought a class action and Labor Code Private Attorneys General Act (“PAGA”) complaint against Wal-Mart alleging, in part, that Wal-Mart issued deficient wage statements in violation of Labor Code Section 226. The alleged defect was prompted by a “Myshare” bonus, a quarterly bonus based on non-discretionary metrics. Because the bonus was non-discretionary, the law required Wal-Mart to factor the bonus into the “regular rate” of pay used to calculate the overtime premium. But, since the bonus was earned and paid quarterly while the overtime premium on hourly pay is paid during every two-week pay period, the premium must be recalculated and adjusted with a supplemental payment each quarter.

Nobody in the case disputed that Wal-Mart calculated and paid the correct adjusted amount using…

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