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Judge in business law case rejects California class action suit

When in business companies may end up having to hire employees in order to fulfill demands for products or services. Although this makes companies more profitable it also opens them up to potential employment lawsuits from employees who feel they have been treated wrongfully by their employers. Large corporations are especially at risk because of the large number of employees required to operate the businesses. Also, business law in California allows employees to file what is known as a class action lawsuit which can be potentially more damaging for a company.

This type of lawsuit lumps together numerous plaintiffs against one defendant on the basis that the defendant's alleged wrongdoing was directed at what can be legally called a class of employees. However, the court has to approve of the classifying of the group of employees. One judge recently ruled in favor of the large corporation Walmart during an attempt by a lawyer to bring a class action lawsuit on behalf of all 150,000 California female employees.

The judge ruled that there was insufficient evidence to show that there was a company policy which promoted discrimination against women in general in California. The initial complaint was originally filed in 2011 which attempted to represent all 1.6 million women employees working for Walmart stores across the nation. However, the judge ruled this was too broad of a class and also stated the same regarding the most recent attempt at limiting the class to women employees in California.

This is a victory for the defendant corporation. However, the company may still be liable for individual lawsuits from women employees in California. On the other hand, the company will be able to defend itself against allegations in the court of law. However, the company will need to have a firm grasp on applicable business law as well as be able to apply it to specific situations.

Source: theguardian.com, "Judge rejects class action bias lawsuit filing against Walmart," Aug. 3, 2013

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