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Walmart Settles Discrimination Suit Over Benefits for Same-Sex Spouses

Dec 2, 2016 / Media Coverage / The New York Times — Noam Scheiber

Walmart announced on Friday that it had settled a lawsuit that accused the company of discriminating against gay and lesbian employees when it denied health insurance benefits to same-sex spouses.

Under the deal, Walmart will set aside $7.5 million, mostly to compensate employees affected by the denial of spousal benefits during the three years before Jan. 1, 2014, when the company changed its policy. More than 1,000 people may be eligible.

But the agreement also signals how legal doctrine on discrimination against gays and lesbians is rapidly changing, making it increasingly likely to be considered a form of sex discrimination. Such a doctrine would generally make it easier for gay and lesbian plaintiffs to prevail in court, as federal civil rights laws prohibit sex discrimination.

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The settlement is pending preliminary approval by the judge in the case, which typically happens within a matter of weeks.

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