You received the Notice because records show that you were an hourly associate employed at a Wal-Mart, Sam’s Club or Distribution Center (collectively “Wal-Mart”), in the State of Minnesota, at any time from September 11, 1998 to November 14, 2008. The purpose of the Notice is to inform you about a proposed settlement (the “Settlement”) of Braun v. Wal-Mart, Case No. 19-CO-01-9790, Dakota County, Minnesota (the “Litigation”), your rights in regard to the Settlement, and the steps you must take to obtain benefits of the Settlement in the event it is given final approval by the District Court. The District Court has given preliminary approval to the Settlement as fair, reasonable and adequate.

This is a class action brought by Named Plaintiffs Nancy Braun, Debbie Simonson, Cindy Severson and Pamela Reinert on behalf of current and former hourly workers employed by Wal-Mart in the State of Minnesota. The case was filed in the District Court on September 10, 2001. The Named Plaintiffs alleged various claims regarding off-the-clock work and missed and/or interrupted meal periods and rest breaks, including but not limited to claims for breach of contract and violation of various Minnesota laws.

In the fall of 2007, the parties tried the first phase of a three-phase trial to the District Court. After phase one of trial, the District Court awarded the Plaintiffs approximately Six Million Five Hundred Thousand Dollars ($6,500,000) in compensatory and liquidated damages on their (1) contractual missed and short rest break claims; (2) Computer Based Learning (“CBL”) off-the-clock work claim; and (3) claims for violating a Minnesota Rule that the District Court held required rest breaks between 15 and 20 minutes to be paid. The District Court also found for the Plaintiffs on their contractual missed and short meal period, statutory missed meal period and statutory recordkeeping claims.

In addition to awarding damages, the District Court issued an injunction requiring Wal-Mart to submit an action plan relating to statutory meal periods to ensure that it does not violate Minnesota law by providing insufficient meal periods to its employees, and to continue using technology that requires employees to be on the clock before using CBL modules.

The District Court also ruled that, in the second phase of the trial, Wal-Mart could be subject to civil penalties of up to $1,000 per violation for 2,026,863 violations of Minnesota statutes in connection with Plaintiffs’ (1) statutory meal period claim; (2) CBL off-the-clock work claim; (3) 15 to 20-minute rest break claim; and (4) recordkeeping violations claim. The District Court further found that Wal-Mart’s failure to properly compensate Plaintiffs was willful, justifying a three-year statute of limitations period.

The District Court denied the class any monetary relief on their (1) contractual missed and short meal period claims; (2) inserted rest and meal period claims; (3) statutory short and missed rest break claims; (4) statutory short and missed meal period claims; and (5) claims for off-the-clock work on cash registers. Before trial, the Court had denied the class monetary relief on their fraud claim, late payment claims, and claims relating to manager-inserted punches one minute after an employee punched in, depriving the employee of proper pay.

On July 29, 2008, Wal-Mart asked the Minnesota Court of Appeals to review the District Court’s decision and appealed the issuance of the injunction. Plaintiffs opposed Wal-Mart’s petition for review and sought a dismissal or stay of the injunction appeal. Wal-Mart also asked the District Court to reconsider various aspects of its decision, and Plaintiffs opposed Wal-Mart’s request for reconsideration.

A jury trial to determine punitive damages and the amount of any civil penalties was scheduled to begin on October 20, 2008. When the parties notified the Court of Appeals and the District Court that they had reached a Settlement of this matter, the Court of Appeals and the District Court suspended further rulings on pending matters. The parties have since asked both courts to stay further proceedings so that Settlement matters can be addressed, and the Court of Appeals has stayed all proceedings.

Wal-Mart denies any wrongdoing or liability and contests all claims that have been asserted. If the case is not settled, or if you exclude yourself from the Settlement and pursue your own claim, Wal-Mart will oppose any claim that it believes is not proper, justified, or supported by the facts and law.

In a class action lawsuit, named plaintiffs sue on behalf of those who have similar claims. The people together are a “class” or “class members.” A court decides whether it will allow a lawsuit to proceed as a class action. If the court decides to certify the case as a class action, a trial of the claims decides the lawsuit for everyone in the class, or the parties may settle without a trial.

In this case, the District Court certified a class on November 3, 2003, consisting of all current and former Minnesota Wal-Mart hourly employees who worked for the company at any time during the period from September 11, 1998 to January 31, 2004. For purposes of the Settlement, the District Court has certified a larger class, consisting of all current and former hourly associates employed by Wal-Mart in the State of Minnesota at any time from September 11, 1998 to November 14, 2008 (the “Settlement Class”).

A settlement is the resulting agreement between a plaintiff and defendant following extended negotiation. Settlements end litigation, but are not a result of the court ruling in favor of either the plaintiff or defendant. A settlement allows both parties to (a) avoid the cost and risk of a trial, and (b) establish a just, fair and final resolution that is best for all involved.

Attorneys representing the Settlement Class have engaged in intensive settlement discussions and arm’s length negotiations with Wal-Mart and Wal-Mart’s attorneys on behalf of all class members. These efforts have resulted in the Settlement described on this website. The Named Plaintiffs and Plaintiffs’ counsel have concluded, after extensive investigation and discovery of the facts of the case, research and assessment of the legal issues, and nearly three months of trial, that the Settlement is in the best interests of the Settlement Class members. Settlement avoids the uncertainties and delay inherent in the continued prosecution of this complex case while securing for the Settlement Class substantial monetary and equitable recovery, including with respect to some claims for which the District Court previously denied class action status or ruled that no monetary relief was owing by Wal-Mart.

The terms and conditions of the Settlement, which will become effective only if given final approval by the District Court, are set forth in detail in the Settlement Agreement, which is available upon request (See “Where do I obtain more information?”). The principal terms are summarized in these Frequently Asked Questions and in the Notice, which is available by clicking on the “Notice” link on the left side of the page.

The Settlement provides that Wal-Mart will pay $54,250,000 into a Settlement Fund, to be allocated as follows:

1. Payment in the amount of up to $15,250,000 to the Settlement Class (the “Class Settlement Amount”).

     (a)   In order to recover, each Settlement Class member must submit a claim by either: (i) a short form (Claim Form A) which provides for an automatic, fixed payment; or (ii) a long form (Claim Form B), which provides for a payment amount, up to a maximum amount, to be determined based on the number of claims filed, the injury claimed by the Settlement Class member, and the number of years the Settlement Class member worked at Wal-Mart. The short form payment amount is $50 for a Settlement Class member who worked at Wal-Mart for the approximate pay period equivalent of thirty (30) days or less; $75 for a Settlement Class member who worked at Wal-Mart for the approximate pay period equivalent of between thirty (30) and sixty (60) days; and $100 for a Settlement Class member who worked at Wal-Mart for the approximate pay period equivalent of sixty (60) days or more. The agreement to provide for a short form payment reflects the fact that the District Court found more than 1.5 million violations of a unique Minnesota law, Rule 5200.0120, which violations involved no individual action or discretion by associates.

     (b)   Plaintiffs’ counsel will also ask the District Court to make monetary awards out of the Class Settlement Amount to each of the four Named Plaintiffs for their efforts in this Litigation. This compensation shall be in addition to any other money to which the Named Plaintiffs are entitled under the Settlement.

2. Payment in the amount of $14,000,000 to the Minnesota Department of Labor and Industry (“DLI”) on behalf of the State of Minnesota.

3. Payment of attorneys’ fees and out-of-pocket costs in the amount of $25,000,000 to class counsel.

Each recipient of any monies paid under the Settlement is responsible for any taxes associated with the monies received by each recipient. Wal-Mart shall be responsible for payment of any employer-associated tax liabilities.

Wal-Mart also agrees to continue, for a three year period, to use reasonably feasible technology to aid hourly employees and management in (1) ensuring that hourly employees only work on in-store electronic devices while on the clock; (2) providing hourly employees with opportunities to take legally required meal periods and rest breaks; (3) preventing unapproved one-minute clock-outs; and (4) assuring compliance with Minnesota law governing the treatment of break time as hours worked. Wal-Mart will also continue to make reasonable efforts to verify that associates are being provided the opportunity to take legally required meal and rest breaks and are not being permitted to work off the clock, make its Ethics (or similar) Hotlines available to hourly associates to report missed rest breaks, missed meal breaks or off-the clock work, take appropriate action in response to such reports and information gathered, and make such reports and information gathered available to the DLI upon its request. In addition, Wal-Mart will continue to cooperate with the DLI in any audits, reviews or inquiries that the DLI initiates.

This is only a summary. Further details regarding these terms of Settlement are contained in the Settlement Agreement.

If you are a member of the Settlement Class and you wish to receive the described Settlement benefits, you must complete and mail to the Claims Administrator, on or before June 30, 2009, a claim form that satisfies all of the requirements set forth in the claim form. You can download a Short Claim Form, entitled “Claim Form A”, or a Long Claim Form, entitled “Claim Form B”, by clicking on the “Claim Forms” link on the left side of the page. You should only submit one of the two claim forms, either Claim Form A or Claim Form B, not both.

You should fill out and mail Claim Form A if you wish to receive an automatic payment based on the amount of time you worked at Wal-Mart ($50 if you worked for the approximate pay period equivalent of thirty (30) days or less; $75 if you worked for the approximate pay period equivalent of between thirty (30) and sixty (60) days; and $100 if you worked for the approximate pay period equivalent of sixty (60) days or more). If you believe you are entitled to an amount of money different than that provided by Claim Form A, you may fill out and mail Claim Form B. If you submit Claim Form B, the exact amount of your payment will depend upon your work experience and the total amount of claims approved. Make sure you sign and date the claim form that you submit.

Taxes will be deducted from any payment you receive under the Settlement. Both Claim Form A and Claim Form B allow you to choose the method by which these taxes will be deducted. You have two options, which are as follows:

Option A: Complete a Form W-4 and have taxes withheld from your payment based on the marital status and withholding exemptions you list on the Form W-4. If you choose this option, you should complete the Form W-4 that was mailed to you with the Notice. You can also download a Form W-4 by clicking on the “Form W-4” link on the left side of the page.

Option B: Do not complete a Form W-4, and have taxes withheld at the rate of a single person claiming no withholding exemptions. If you choose this option, you should not complete the Form W-4 that was mailed to you with the Notice.

Retaliation against employees relating to their participation in or exclusion from the Settlement is unlawful and is strictly prohibited. Unless you initiate a proceeding other than the above-captioned case, your managers and co-workers will not be told if you participated in or excluded yourself from the Settlement or about the nature of your participation or non-participation absent a showing by Wal-Mart of good cause to disclose this information. Your rights to confidentiality in connection with the Settlement are explained in more detail in the Settlement Agreement.

Either party can challenge the accuracy of your claim by using challenge procedures described in detail in the Settlement Agreement. If this occurs, you may be given notice and the opportunity to participate in the challenge. Further details regarding challenges are contained in the Settlement Agreement.

If you do not exclude yourself from the Settlement Class, you will be included in the Settlement Class and will be entitled to submit a claim for money benefits. Regardless of whether you submit a claim form, if you do not file an exclusion letter, you will be bound by the terms and conditions of the Settlement, including the release of claims as described in the Settlement Agreement. If you file a claim form, you are giving up your right to sue Wal-Mart concerning the legal claims in this case, including your right to sue Wal-Mart under the Federal Fair Labor Standards Act. If you do not file a claim form, and you also do not file an exclusion letter, you will be releasing all of your claims other than certain claims you may have under the Federal Fair Labor Standards Act. These claims that you may have under the Federal Fair Labor Standards Act must be pursued in a timely fashion, or they may be time-barred.

The full language of the Release is contained in the Settlement Agreement.

You have a right to exclude yourself from the Settlement Class. If you exclude yourself from the Settlement Class, you will be giving up the right to any of the described Settlement benefits and the right to object to the Settlement, but you will be free to pursue your claims individually. If you exclude yourself from the Settlement Class and do not pursue your claims timely, some or all of your claims may be barred by the passage of time.

To exclude yourself from the Settlement Class, you must send a letter signed by you that includes all of the following:

• Your full name;
   
• Your current address;
   
• Your telephone number;
   
• The name and number of the lawsuit: Braun v. Wal-Mart, No. 19-CO-01-9790;
   
• The last four digits of your social security number;
   
• The date; and
   
• The following language: I want to be excluded from the Settlement Class. I understand that by submitting this notice of exclusion, I will not be entitled to any benefits of the Settlement or to object to the Settlement. By affixing my signature to this notice of exclusion, I certify under penalty of perjury that the foregoing is true and correct.

Your exclusion letter must be postmarked by June 30, 2009, and mailed to the Claims Administrator, as follows:

Minnesota Wal-Mart Settlement
P.O. Box 56798
Jacksonville, FL 32241-6798

PLEASE REMEMBER THAT YOU CANNOT EXCLUDE YOURSELF BY PHONE, BY SENDING AN EMAIL, OR BY FACSIMILE.

Yes. If you object to the Settlement, the objection must be in writing and include:

• The case name and number: Braun v. Wal-Mart, No. 19-CO-01-9790;
   
• A detailed statement of your objection(s), as well as the specific reasons for each objection, including any evidence and legal authority you wish to bring to the District Court’s attention;
   
• Your name, address and telephone number; and
   
• Any other supporting papers, materials or briefs you wish the District Court to consider when reviewing the objection.
   

Objections will be considered by the District Court only if filed with the District Court on or before April 15, 2009, at the following address:

Court Administrator
Dakota County District Court
Dakota County Judicial Center
1560 Highway 55
Hastings, MN 55033

You must also mail a copy of any objections postmarked by April 15, 2009, to:

Justin H. Perl
Jonathan S. Parritz
Maslon Edelman Borman & Brand, LLP
3300 Wells Fargo Center
90 South Seventh Street
Minneapolis, MN 55402-4140

And to:

Neal Manne
Shawn Rabin
Susman Godfrey L.L.P.
901 Main Street, Suite 5100
Dallas, TX 75202

Any person who fails to submit an objection in the manner and by the deadline set forth above shall be regarded as having waived such objection and will be barred from subsequently raising it in any proceeding relating to the Settlement.

Exclusion means that you are no longer a member of the Settlement Class and do not want to be subject to the Settlement’s terms and conditions. Once excluded, you lose any right to object to the Settlement because the case no longer affects you, and you will not receive any Settlement benefits. Objection means that you object to some aspect of the Settlement but wish to remain a member of the Settlement Class and be subject to the Settlement. An objection allows your views to be heard in District Court.

Yes. The District Court has appointed the following law firms to represent the Settlement Class:

Maslon Edelman Borman & Brand, LLP
Justin H. Perl
Jonathan S. Parritz
3300 Wells Fargo Center
90 South Seventh Street
Minneapolis, MN 55402-4140

Schwebel Goetz & Sieben
William R. Sieben
5120 IDS Center
80 South Eighth Street
Minneapolis, Minnesota 55402-2246

Franklin D. Azar & Associates
Franklin D. Azar
Rodney Bridgers, Jr.
14426 East Evans Avenue
Aurora, CO 80014

Bader & Associates, P.C.
Gerald L. Bader, Jr.
1873 South Bellaire Street
Suite 1110
Denver, CO 80222

You won’t be charged personally for these lawyers. They will ask the District Court to decide how much they should be compensated for the work they performed in representing the class. These lawyers have worked over 50,000 hours on this case for the class and have paid approximately $4,000,000 in expenses for the class out of pocket over the 7 years of this Litigation with no guarantee of payment. They will ask the District Court to award them $25,000,000, to be paid by Wal-Mart, for their attorneys’ fees, out-of-pocket expenses and costs which they incurred in representing the class.

You do not need to hire your own lawyer. However, if you object to the Settlement, Class Counsel will not represent you in connection with your objection. You have the right to represent yourself or to hire your own lawyer to represent you in connection with your objection.

If you want your own lawyer to speak for you or appear in court, you must file a Notice of Appearance (see “May I speak at the Final Approval Hearing?”). If you hire a lawyer to appear for you in the Litigation, you will be responsible for that attorney’s fees and expenses.

The District Court will hold a Final Approval Hearing on May 27, 2009, at 9:00 a.m. before the Honorable Robert R. King, Jr., Judge of District Court, at the Dakota County Judicial Center, 1560 Highway 55, Hastings, Minnesota 55033.

At the hearing, the District Court will determine whether the Settlement should be given final approval as fair, reasonable and adequate; determine whether judgment dismissing this Litigation with prejudice should be entered; and determine Plaintiffs’ and Plaintiffs’ counsel’s request for an award of attorneys’ fees and costs and for incentive compensation for the Named Plaintiffs. If objections have been received, the District Court will consider them at this time. Without further notice, the District Court may adjourn and reconvene the hearing from time to time by oral announcement and may approve the Settlement and enter a judgment dismissing the Litigation. If the District Court approves the Settlement, you will receive your Settlement payment as soon as practicable after final District Court approval of the Settlement and resolution of any objections and appeals.

Attendance is not required. If you or your personal attorney wants to attend the hearing, you may do so at your own expense.

If you want to speak or you want your personal attorney to speak at the Final Approval Hearing, you must give the District Court a paper that is called a “Notice of Appearance.” The Notice of Appearance should include:

• The name and number of the lawsuit: Braun v. Wal-Mart, No. 19-CO-01-9790;
   
• Your name, address and telephone number; and
   
• Your signature.
   

The Notice of Appearance should also state that you wish to enter an appearance at the Final Approval Hearing.

Your Notice of Appearance must be filed with the District Court on or before April 15, 2009, at the following address:

Court Administrator
Dakota County District Court
Dakota County Judicial Center
1560 Highway 55
Hastings, MN 55033

You must also mail a copy of your Notice of Appearance postmarked by April 15, 2009 to:

Justin H. Perl
Jonathan Parritz
Maslon Edelman Borman & Brand, LLP
3300 Wells Fargo Center
90 South Seventh Street
Minneapolis, MN 55402-4140

And to:

Neal Manne
Shawn Rabin
Susman Godfrey L.L.P.
901 Main Street, Suite 5100
Dallas, TX 75202

You cannot speak at the Final Approval Hearing if you asked to be excluded from the Settlement Class.

The Settlement as a whole is subject to the approval of the District Court. If the District Court does not approve the Settlement, or if it does not become effective for any reason, the Settlement will be nullified, the parties will retain the rights they had prior to signing the Settlement Agreement, and the pre-settlement status of the Litigation will be restored. If the District Court does not approve the Settlement, or if it does not become effective for any reason, and you were not an hourly employee of Wal-Mart in the State of Minnesota during the period September 11, 1998 to January 31, 2004, you will not have any rights in connection with this Litigation.

These Frequently Asked Questions contain a summary of the Litigation, the Settlement and related matters. These Frequently Asked Questions do not fully describe all of the claims and contentions of the parties. For more detailed information, you or your attorney may review the pleadings and other documents filed in this Litigation during regular business hours on any business day, at the offices of the Clerk of Court, County of Dakota, First Judicial District, Dakota County Judicial Center, 1560 Highway 55, Hastings, Minnesota 55033. Any questions you may have concerning the matters contained in these Frequently Asked Questions, including a request to review the Settlement Agreement, should be directed to: Minnesota Wal-Mart Settlement, P.O. Box 56798, Jacksonville, FL 32241-6798.

You may also call toll-free 1-888-697-8026 to obtain more information.

PLEASE DO NOT CONTACT THE JUDGE OR THE CLERK OF COURT WITH REQUESTS FOR ADDITIONAL INFORMATION ABOUT THE DETAILS OF THE SETTLEMENT.