
Reuters: Walmart was hit with a $125 million verdict, but the law is on its side
UC law professor analyzes ruling involving the cap on damages in lawsuits under the ADA
Reuters reported this week on the decision by a federal jury in Wisconsin which hit Walmart with $125 million in punitive damages for firing a longtime employee with Down Syndrome.
Marlo Spaeth held a job at Walmart for about 16 years without issue, but she began struggling after the company implemented an algorithm-based scheduling system in 2014. The Equal Employment Opportunity Commission (EEOC) argued on her behalf that her disability made it difficult to adapt to a new routine. Walmart fired her for attendance and punctuality issues after she was assigned a new shift schedule.
EEOC Chair Charlotte Burrows said after the trial that the “substantial jury verdict” against the world’s largest retailer “sends a strong message” to other employers and businesses.
Sandra Sperino, professor in the UC College of Law
Sandra Sperino, a professor at the University of Cincinnati College of Law, told Reuters that one of the “weird” things about the statute is that it specifies that the jury shouldn’t be told about the damages cap. Sperino wrote a book in 2017 called "Unequal: How America’s Courts Undermine Discrimination Law." She said she has plans to incorporate the Walmart case into her courses at UC because it seems like a good tool to teach the issue of statutory damages caps.
“The jury deliberates without any knowledge of the cap. Then, when it actually comes into play, it’s the judge that reduces the award according to the cap,” she said.
There’s certainly a message being sent, though of a different sort than Burrows, or the jurors, likely meant.
Labor Secretary Marty Walsh commented that $1 million is both a relatively large fine by OSHA standards, and “not enough” of a disincentive for businesses that abuse employees and cut corners on regulatory compliance.
“Some of the employment discrimination statutes have even more limited damages than the Americans with Disabilities Act and Title VII of the Civil Rights Act,” Sperino said. “Those statutes don’t necessarily stand out as outliers.”
Lead photo/John Gress/Reuters
Your Next is Now. It Starts Here.
As one of the nation’s smallest urban law schools, we will help you follow your path to fulfill your passion. Our students shine brightest when they are fighting for the disenfranchised, elevating local entrepreneurs, combating economic inequalities, and defending human rights. No matter what path you choose, we’ll make it possible. Learn more today.
Related Stories
Clean Earth Rovers cofounders named to Forbes 30 Under 30 list
November 30, 2023
A pair of graduates of the University of Cincinnati’s Venture Lab program were recognized as being among the top entrepreneurs in North America as part of the 2024 Forbes 30 Under 30 list. Clean Earth Rovers cofounders Michael Arens and David Constantine were named to the 13th annual Forbes 30 Under 30 list in the energy category.
CNN Business: Best Buy’s simple strategy for beating shoplifting
November 30, 2023
The Best Buy approach to thwart shoplifting is to increase staffing. It's a move that UC criminologist John Eck says, in a CNN Business article, that makes perfect sense. It's also a different approach at a time when most retailers are reducing staff.
National media highlight newest US World Heritage site
November 28, 2023
For nearly two decades, professor emeritus John Hancock helped lead a team of archaeologists, historians and Native American scholars, including staff at the National Park Service and Ohio History Connection, to have the Hopewell earthworks recognized on par with other World Heritage sites such as the Great Wall of China and Stonehenge.