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Court upholds $3M judgment against Gerber Products Co.
Court Watch |
2016/05/30 13:52
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A sharply divided Arkansas Supreme Court on Thursday said a baby food manufacturer must pay more than $3 million to workers for the time they spent dressing and undressing into uniforms and protective gear.
In a 4-3 ruling, the high court upheld a lower court's ruling that Gerber Products Co. should have compensated more than 800 workers at its Fort Smith facility for the time they spent changing into uniforms, donning protective gear such as ear plugs and washing their hands, as well as undressing after their shifts ended. Justices sided with the workers who said Arkansas' Minimum Wage Act required the company to compensate for the activities despite an agreement with the union.
"We hold that the donning and doffing activities constitute compensable work under the AMWA, despite the custom and practice under the collective-bargaining agreement," Justice Karen Baker wrote in the majority opinion.
The ruling drew sharp objections from three justices, who said in a dissenting opinion that because of the decision "the floodgates will open to litigation at the enormous cost to businesses in Arkansas."
"In addition, the majority undermines the collective-bargaining process and destroys any confidence employers and employees have in the enforceability of their agreements," Justice Rhonda Wood wrote.
Gerber had argued the workers' union had agreed to not be paid for the time in a contract that also included larger wage increases for the employees. The company said in a statement it was disappointed with the ruling and was evaluating its options. |
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Investment Fraud Litigation |
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Securities fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws. Securities Arbitration. Generally speaking, securities fraud consists of deceptive practices in the stock and commodity markets, and occurs when investors are enticed to part with their money based on untrue statements.
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