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UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA EQUAL EMPLOYMENT OPPORTUNITY COMMISSION, Plaintiff, v. WAL-MART STORES, INC., Defendant. Civil Action No. S99-0414 GEB DAD CONSENT DECREE Before: Honorable Garland E. Burrell, Jr. Hearing: December 17, 2001 at 9:00 a.m. [ edited for Web publication] INTRODUCTION The United States Equal Employment Opportunity Commission (the “Commission” or “EEOC”) filed this action against the Defendant, Wal-Mart Stores, Inc. (“Wal-Mart”) to enforce Title I of the Americans with Disabilities Act, 42 U.S.C. �12101, et seq. (“the ADA”) and Title I of the Civil Rights Act of 1991, 42 U.S.C. �1981a. The Commission’s Complaint alleges that Wal-Mart discriminated against Steve Sanders by failing to accommodate his disability, and by terminating him because of his disability. The EEOC also alleged that Wal-Mart made illegal preemployment medical inquiries to a class of victims. The Commission’s Complaint seeks to recover back pay, front pay, compensatory damages, punitive damages, and injunctive relief. As a result of the parties having engaged in settlement negotiations, the parties agreed that this action should be finally resolved by entry of this Consent Decree. This Consent Decree was entered into by the parties as an amicable way of resolving all outstanding differences that may have existed in this case. This Consent Decree is intended and does fully and finally resolve any and all claims arising out of the Complaint filed by the EEOC. The parties do not object to the jurisdiction of the Court over this action and waive the Entry of Findings of Fact and Conclusions of Law. FINDINGS It is ORDERED, ADJUDGED AND DECREED: Having examined the terms and provisions of this Consent Decree and based on the pleadings, record, and stipulations of the parties, the Court finds the following: This Consent Decree resolves all claims arising out of the issues between the Commission and Wal-Mart in this lawsuit, including, without limitation, back pay, front pay, compensatory and punitive damages, injunctive relief, costs, and attorneys’ fees. The Court has jurisdiction of the subject matter of this action and of the parties. The terms and provisions of this Consent Decree are adequate, fair, reasonable, equitable, and just. The rights of the parties are adequately protected by this Consent Decree. This Consent Decree conforms with the Federal Rules of Civil Procedure and the ADA and is not in derogation of the rights and privileges of any person. The entry of this Consent Decree will further the objectives of the ADA and will be in the best interests of Wal-Mart, the Commission, and the public. I. NON-DISCRIMINATION In all matters arising from or relating to employment, Wal-Mart and its officers, agents, employees, successors, and assigns, and all of those in active concert or participation with them, or any of them, shall not engage in any employment practice which unlawfully discriminates against an employee or applicant under the Americans with Disabilities Act. Prohibited discrimination includes, but is not limited to: refusing to hire or rehire a qualified individual with a disability because of his/her disability; refusing to provide a reasonable accommodation to a qualified individual with a disability; discharging a qualified individual with a disability because of his/her disability; maintaining any practice or policy that violates the ADA by depriving or tending to deprive any individual of employment opportunities because of such individual’s disability; discriminating against persons on the basis of their disabilities in the terms and conditions of their employment; and, making disability related pre-employment inquiries. II. NON-RETALIATION Wal-Mart, its officers, agents, employees, successors, assigns, and all those in active concert or participation with them, or any of them, shall not engage in reprisal or retaliation of any kind against any person because such person: opposed any practice made unlawful under the ADA; filed a charge of discrimination with the Commission or a state agency or testified or participated in any manner in any investigation, proceeding, or hearing under the ADA; requested and/or received relief in accordance with this Consent Decree; participated in any manner in this action or in the investigation giving rise to this action; or asserted any rights under this Consent Decree. III. MONETARY RELIEF A. Total Settlement Amount In resolution of this and other related pending litigation, Wal-Mart has agreed to pay a total of SIX MILLION EIGHT HUNDRED THOUSAND DOLLARS ($6,800,000.00). By agreement and consistent with the terms of this Consent Decree, judgment is hereby entered in this litigation against Wal-Mart in the amount of THREE MILLION FIVE HUNDRED SIXTY TWO THOUSAND FOUR HUNDRED NINETY ONE DOLLARS AND NINETY FOUR CENTS ($3,562,491.94). In the twelve (12) related actions, which comprise all other pending EEOC cases in litigation against Wal-Mart under the ADA, (itemized on Exhibit A hereto) pending in United States District Courts throughout the United States, Wal-Mart has agreed to cumulative additional payments totaling THREE MILLION TWO HUNDRED THIRTY SEVEN THOUSAND FIVE HUNDRED EIGHT DOLLARS AND TEN CENTS ($3,237,508.10). Within fourteen days of the entry of this Consent Decree, the Commission and Wal-Mart have agreed to file appropriate consent decrees in each of the cases listed on Exhibit A. The Commission and Wal-Mart have agreed and understand that each Court outlined in Exhibit A is where jurisdiction is and remains for all purposes for those cases. It is understood and agreed that those consent decrees will require offers of employment to affected individuals (including charging parties and class members), in the cases listed in Exhibit A. B. Monetary Relief for Steve Sanders, Carl Burch, and John Bendall Within fifteen (15) days after this Consent Decree is approved by the Court, Wal-Mart shall make payment in the form of a business check made payable to Steve Sanders, and will send a copy of the check to Lynn L. Palma, Senior Trial Attorney, EEOC, 901 Market, Suite 500, San Francisco, CA 94103, made payable to him in the gross amount of $202,879.74, including: $43,026.95 for back pay, less only any applicable deductions for the employee’s portion of FICA and applicable federal and state income tax withholdings; $284.95 for interest on the back pay; and, $159,567.84 for compensatory damages. Within fifteen (15) days after this Consent Decree is approved by the Court, Wal-Mart shall make payment in the form of a business check made payable to Carl Burch, and will send a copy of the check to Lynn L. Palma, Senior Trial Attorney, EEOC, 901 Market, Suite 500, San Francisco, CA 94103, made payable to Carl Burch in the gross amount of $171,838.57, including: $9,315.47 for back pay, less only any applicable deductions for the employee’s portion of FICA and applicable federal and state income tax withholdings; $54.03 for interest on the back pay; and, $162,469.07 for compensatory damages. Within fifteen (15) days after this Consent Decree is approved by the Court, Wal-Mart shall make payment in the form of a business check made payable to John Bendall, and will send a copy of the check to Lynn L. Palma, Senior Trial Attorney, EEOC, 901 Market, Suite 500, San Francisco, CA 94103, made payable to John Bendall in the gross amount of $187,773.63, including: $36,696.07 for back pay, less only any applicable deductions for the employee’s portion of FICA and applicable federal and state income tax withholdings; $212.82 for interest on the back pay; and, $150,864.14 for compensatory damages. Wal-Mart will forward to Steve Sanders, Carl Burch, and John Bendall, with the checks described above, an itemized statement of withholdings for each amount withheld, including the employee share of FICA and the applicable federal and state income withholdings from each amount allocated as back pay. Wal-Mart will issue a Form 1099 for all other payments. C. Job Offer for Steve Sanders Within thirty (30) days after this Consent Decree is approved by the Court, Wal-Mart will offer Steve Sanders full or part-time employment, at his option, with any necessary reasonable accommodation, for which he is qualified, at the average rate he would have earned had he not been terminated on February 3, 1996. Mr. Sanders shall have thirty (30) days from the date of the job offer to accept the job offer. Wal-Mart agrees to provide all necessary reasonable accommodations to Steve Sanders. Wal-Mart agrees to assign work schedules, vacation days, sick days, and other benefits of employment to Mr. Sanders that would have been his to enjoy had Wal-Mart continuously employed him since February 3, 1996. After completion of the 90-day probationary period, Steve Sanders will be awarded the effective corporate service date of February 3, 1996 and this date will be the basis for determining his entitlement to wages and benefits, consistent with all applicable Wal-Mart policies and procedures for hourly employees. Wal-Mart will enroll Steve Sanders in any and all benefits, including but not limited to, health and dental benefits, effective the first day of employment. D. $3,000,000 Settlement Fund Within seven (7) days of the Court’s approval of the final allocation of the Settlement Fund as described below, Wal-Mart shall pay the gross sum of THREE MILLION DOLLARS ($3,000,000.00) (“Settlement Fund”) to the Claims Administrator, whose position is described in paragraph 17, to be distributed among all “Eligible Claimants” (as that term is defined below), all in accordance with the provisions of this Consent Decree. The Settlement Fund shall be used solely to make payments to individuals who timely submit Claim Forms (“Claimants”) and whom the Claims Administrator and the EEOC determine, subject to Court approval, to be eligible to receive monetary relief in this lawsuit (“Eligible Claimants”). No persons or entities other than Eligible Claimants shall receive any payments from the Settlement Fund, except for the non-profit organizations identified in paragraph 36 below. E.Claims Administrator Within seven (7) days from the date of entry of this Consent Decree, Wal-Mart shall hire a Claims Administrator, with the approval of the EEOC. Wal-Mart shall be solely responsible for all costs and fees of the Claims Administrator and the work that it does or contracts to be done. The Claims Administrator shall be responsible for: the distribution of Claims Forms and Job Applications; the initial determination of potential Eligible Claimants under this Consent Decree; the distribution of the Settlement Fund; and, the distribution of any remaining money to the non-profit organizations identified in paragraph 36 below. Wal-Mart agrees that the EEOC shall be the sole determiner of who is an Eligible Claimant under this Consent Decree and the amount of monetary relief to be received by any Eligible Claimant subject only to the approval of the Court as described in paragraphs 31 and 32 below. F. Criteria For Determining Potential Eligible Claimants Only those Claimants who satisfy each and all of the following criteria are potential Eligible Claimants: between January 1, 1994, and December 31, 1998, the Claimant applied for a job at a Wal-Mart Distribution Center, listed in Exhibit B, (“the Applicable Facility”); the Claimant was not hired by Wal-Mart; the Claimant met all the non-discriminatory job qualifications at the time of application; and, the Claims Administrator timely receives from such Claimant, in accordance with the procedures set forth in this Consent Decree, a completed Claim Form, attached to this Consent Decree as Exhibit C, and a completed Application for Employment, attached to this Consent Decree as Exhibit D. IV. NOTIFICATION OF SETTLEMENT / CLAIMS PROCESS A. Hiring Location Notice On or before the Monday immediately following the entry of this Consent Decree and until March 1, 2002, (the “Notification Period”), Wal-Mart agrees to prepare and post the notice attached as Exhibit E (“Notice”) in all the Distribution Centers listed in Exhibit B. The Notice posted will be produced on 8″ by 11″ glossy stock paper. The Notice will be displayed in two places at each Applicable Facility: (1) in the employee area where labor and employment notices are posted; and, (2) in the area where job applications are distributed. Wal-Mart’s Personnel Manager at each of the Applicable Facilities, or his/her immediate assistant, will maintain a monthly sheet verifying that the two posters continue to be displayed in the proper locations. This Monthly Verification Sheet will be signed by the Personnel Manager or his/her immediate assistant and sent to the ADA Coordinator the last Friday of each month during the Notification Period. B. Website Notice As a further means of notifying potential Eligible Claimants of the settlement of this lawsuit and of the claims process described in this Consent Decree, Wal-Mart agrees to publish the notice attached as Exhibit E on the website established for purposes of claims in this lawsuit (the “claims website”) during the Notification Period. C. Print Media Notice As a further means of notifying potential Eligible Claimants of the settlement of this lawsuit and of the claims process described in this Consent Decree, Wal-Mart will publish the Notice in certain print media as follows: two insertions each in the Top 50 major metropolitan newspapers, enumerated in Exhibit F, published in a size not smaller than 6″ wide by 6.5″ high, inserted in the general newspaper section and not the classified section, on the dates of December 23, 2001, and December 30, 2001; insertions in PEOPLE Magazine, published in a size not smaller than half a page, dated December 21, 2001, and December 28, 2001; two insertions in Parade Magazine (published nationally), published in a size not smaller than 5 1/4″ by 7″ (peninsula layout) on the dates of January 20, 2002, and January 27, 2002; and, two insertions in USA Weekend, which is published nationally, published in a size not smaller than 4 3/4″ by 5 3/8″ on the dates of January 20, 2002, and January 27, 2002. V. CLAIMS PROCESS A. Determination and Notification of Eligibility The Claims Administrator shall mail a copy of the Claim Form, attached as Exhibit C, and an Application for Employment, attached as Exhibit D, to each individual who requests a Claim Form within three (3) working days of receiving the request. All Claim Forms must be postmarked by March 1, 2002, to be considered. Each Claim Form submitted to the Claims Administrator shall be reviewed by the Claims Administrator within seven (7) calendar days of the date of receipt of the Claim Form. Within seven (7) calendar days of the date of receipt of the Claim Form, the Claims Administrator will respond by: (1) where there is a non-substantive deficiency in the materials, sending a notice to the Claimant explaining the deficiency, and informing the claimant that the deficiency must be corrected within fourteen (14) calendar days; or, (2) sending a notice that: (a) the individual has been initially designated as a potential Eligible Claimant; and, (b) advising the individual that the EEOC will review the claim form and determine if the potential Eligible Claimant is an Eligible Claimant, and that the EEOC may conduct additional investigation in making that determination; or, (3)sending a notice that: (a) the individual has been found ineligible for relief under this Consent Decree for either: i)failing to have the claim postmarked by March 1, 2002, or, ii) failing to have applied during the relevant time period, or, iii) failing to meet Wal-Mart’s non-discriminatory job qualifications at the time of application; and, (b) the individual will have an opportunity to object to the Claim Administrator’s determination of eligibility in accordance with the provisions of this Consent Decree. The Claims Administrator will send copies of the Claim Forms of the individuals initially determined to be potential Eligible Claimants to the EEOC at the same time that the notices are sent to the potential Eligible Claimants. The EEOC will determine which of the potential Eligible Claimants were adversely affected by Wal-Mart’s disability related pre-employment inquiries and are therefore Eligible Claimants entitled to relief under this Consent Decree. In making this determination the EEOC, in its own discretion, may seek additional information. The EEOC will notify all potential Eligible Claimants who it determines are not entitled to relief under this Consent Decree. B. Objection Procedure Any Claimant whose Claim Form is timely received by the Claims Administrator and who desires to object to the Claims Administrator’s determination concerning potential eligibility may do so by mailing to the Special Master [FOOTNOTE 1] (as described below), within thirty (30) days after the date of mailing of the Claims Administrator’s determination, a written objection. Any such written objection must state the basis for the objection and include supplementary explanation and/or documentation. The Special Master shall promptly consider each written objection he or she receives. Within twenty-one (21) days after receiving any objections made by a Claimant, or as soon thereafter as is practicable, the Special Master shall render a final determination as to whether the objecting Claimant is a potential Eligible Claimant. The Special Master shall, on the same day, notify in writing the Claims Administrator, the EEOC, and the objecting Claimant of that final determination. The determination shall be binding upon the EEOC, the Claims Administrator, and the objecting Claimant. C. Court Approval of Monetary Relief The EEOC shall make a determination as to the amount of monetary relief from the Settlement Fund that will be awarded to each Eligible Claimant. The EEOC will determine the amount to be paid to each Eligible Claimant after all of the Claim Forms have been processed. The EEOC will notify the Court and request approval of the Court for the final distribution. Wal-Mart agrees that it will neither participate in nor object to the EEOC’s determinations. D. Submission of Final Distribution List Within thirty (30) days of the final determination by the EEOC, the EEOC shall file with the Court a motion for the Court’s approval of the allocation of the Settlement Fund among Eligible Claimants as determined by the EEOC. In connection with this motion, the EEOC shall file a final settlement distribution list which shall contain the name, address, and final gross settlement amount for each Eligible Claimant. E. Notification and Distribution of Final Settlement Amounts Within fourteen (14) days after the Court enters an Order approving the EEOC’s proposed allocation of the Settlement Fund, Wal-Mart shall ensure that the Claims Administrator shall forward payment to each eligible claimant by certified mail, return receipt requested. Return Receipt cards shall be maintained in a central location and made available for review by the EEOC. The Claims Administrator will mail copies of the checks to the Commission’s San Francisco, California, and Phoenix, Arizona, Regional Attorneys at the same time it mails the checks to each Eligible Claimant. F. Payment Reconciliation Wal-Mart shall ensure that the Claims Administrator shall send to the EEOC a listing of each payee’s name and the check amount. Wal-Mart shall ensure that the Claims Administrator shall promptly notify the EEOC in writing of any checks that are returned or any checks that are not cashed after a period of ninety (90) days has elapsed from the date on which the settlement checks were mailed. As directed by the EEOC, the Claims Administrator shall take further steps in a timely manner to reach those Eligible Claimants who did not receive and/or deposit their settlement checks. G. Surplus Funds to Non-Profit Organizations In the event that any portion of the Settlement Fund, including accrued interest, has not been distributed as required by this Consent Decree after a period of one hundred twenty (120) days has elapsed from the date on which the settlement checks were mailed by the Claims Administrator, then such remaining amounts from the Settlement Fund shall be paid to one or more of the following non-profit disability rights organizations: National Association of the Deaf; National Information Center on Deafness; American Diabetes Association; American Paralysis Association; and, American Association of People with Disabilities. EEOC shall determine the amount to be given to each organization listed above, subject to Court approval, and shall so notify Wal-Mart’s counsel. H. Wal-Mart to Pay Fund Costs Wal-Mart agrees to pay all costs associated with the distribution of the Settlement Fund to Eligible Claimants, including, without limitation, all costs associated with the creation of the Settlement Fund, all costs related to the issuance and mailing of checks from the Settlement Fund, and all costs relating to the Special Master. All amounts distributed from the Settlement Fund constitute “compensatory damages,” under the Civil Rights Act of 1991, 42 U.S.C. �1981a and no payment made to Eligible Claimant pursuant to this Consent Decree shall constitute or be considered back-pay. Wal-Mart will issue a United States Internal Revenue Service Form 1099 to each Eligible Claimant for all payments from the Settlement Fund. I. Job Offers Within fourteen (14) days of Court approval of the final Eligible Claimants list, the EEOC shall forward to the ADA Coordinator (as described below) a list of all Eligible Claimants and completed Job Application Forms. Within thirty (30) days of receipt of the completed Job Application Forms, the ADA Coordinator will determine which Eligible Claimants are qualified for employment in accordance with Wal-Mart’s legitimate non-discriminatory criteria (“Qualified Applicants”). Within sixty (60) days of the determination of Qualified Applicants, the ADA Coordinator will: notify each Qualified Applicant of their potential eligibility for an offer of employment at an Applicable Facility listed in Exhibit B, and the method for obtaining an interview at the Applicable Facility, arrange for such interviews at the Applicable Facility, and ascertain the then-current job openings at the Applicable Facility; and, notify each Eligible Claimant who is not a Qualified Applicant of the reason(s) for their rejection and of their ability to object to the ADA Coordinator’s determination concerning their status as a Qualified Applicant by mailing to the ADA Coordinator, within fourteen (14) days after the date of mailing of the ADA Coordinator’s determination, a written objection. Any such written objection must state the basis for the objection and submit supplementary explanation and/or documentation. Within two (2) weeks after receipt of any such written objection, the ADA Coordinator shall review the determination of whether the objecting Eligible Claimant was a Qualified Applicant, either modify the determination, or deny the objection and submit the objection to the Special Master, with a copy to the EEOC. The Special Master shall promptly consider each written objection he or she receives. Within twenty-one (21) days after receiving from the ADA Coordinator any objections made by an Eligible Claimant, or as soon thereafter as is practicable, the Special Master shall render a final determination as to whether the objecting Eligible Claimant is a Qualified Applicant. The Special Master shall, on the same day, notify in writing the ADA Coordinator, the EEOC, and the Eligible Claimant of that final determination. The determination shall be binding upon the EEOC, the ADA Coordinator, and the objecting Eligible Claimant. Qualified Applicants who have completed the interview process will be given preference in job offers at the Applicable Facility in the following manner: The ADA Coordinator will maintain a roster of Qualified Applicants for nine (9) months from the date the ADA Coordinator receives the list of Eligible Claimants and Job Applications from the EEOC, (“the Offer Period”). The ADA Coordinator will ascertain job openings at each Applicable Facility every thirty (30) days during the Offer Period. The Qualified Applicant will be extended a job offer at the Applicable Facility in preference to similarly qualified applicants for open positions during the Offer Period. Within fourteen (14) days of the expiration of the Offer Period, the ADA Coordinator will notify each Qualified Applicant who has not received a job offer that their application for employment is no longer actively being considered. VI. APPOINTMENT OF SPECIAL MASTER Within thirty (30) days of entry of this Consent Decree, Wal-Mart agrees to select, subject to approval of the EEOC, an independent consultant with expertise in EEO, the ADA, and personnel matters (the “Special Master”)(1) to perform the duties described below, and to review and critique Wal-Mart’s compliance and implementation of this Consent Decree. The EEOC shall notify Wal-Mart within fourteen (14) days whether or not it approves of Wal-Mart’s choice. In the event that the EEOC and Wal-Mart are unable to agree on the selection of a Special Master, they may each submit the names and curriculum vitae of not more than two proposed consultants, and the Court will make the selection. Wal-Mart will compensate the Special Master at a negotiated rate and shall reimburse the Special Master’s reasonable expenses. The Special Master will have the authority and the obligation, subject to the supervision of the Court: to review and critique Wal-Mart’s implementation of this Consent Decree; to make recommendations to Wal-Mart’s ADA Coordinator at least quarterly; to report to the parties and the Court; to determine who is a potential Eligible Claimant, as may be necessary; and, to determine who is a Qualified Applicant, as may be necessary. The Special Master shall, to the maximum extent practicable and consistent with the Special Master’s obligations, work collegially, non-disruptively, and cooperatively with Wal-Mart as not to unduly interfere with Wal-Mart’s operations. Wal-Mart agrees to cooperate with the Special Master, to the maximum extent practicable. The Special Master shall, upon reasonable notice to the ADA Coordinator, have reasonable access to relevant documents, premises, employees, and other sources of information necessary to exercise his or her duties under this Consent Decree. The Special Master may make recommendations to Wal-Mart concerning the implementation of this Consent Decree. The Special Master and Wal-Mart may together consider and modify such recommendations. The Special Master shall submit a copy of his/her recommendations and any subsequent modifications to the ADA Coordinator and the EEOC within fourteen (14) days of his/her recommendations. Within thirty (30) days of receipt of the annual report from the ADA Coordinator, and annually thereafter, the Special Master shall provide a written report to the parties with respect to Wal-Mart’s progress in implementing this Consent Decree. Each report shall: describe the activities of the Special Master during the period; provide an assessment of Wal-Mart’s success in implementing the terms of the Consent Decree; describe any changes in Wal-Mart’s policies or practices made by Wal-Mart in order to implement or meet the objectives of the Consent Decree; discuss any recommendations of the Special Master to Wal-Mart and Wal-Mart’s response; and, include such other information as the Special Master deems appropriate. The Special Master and the EEOC shall have reasonable access to review all non-privileged records maintained by the ADA Coordinator relating to the implementation or administration of this Consent Decree. VII. ADA COORDINATOR Within fourteen (14) days of the entry of this Consent Decree, Wal-Mart agrees to hire an ADA Coordinator, who has expertise in the ADA and personnel matters, to oversee Wal-Mart’s compliance with and implementation of this Consent Decree. Wal-Mart’s ADA Coordinator will be responsible for: coordinating Wal-Mart’s compliance with the ADA; ensuring Wal-Mart’s compliance with this Consent Decree; making any decision about undue hardship in the provision of reasonable accommodations; maintaining records for all employees’ requests for accommodation under the ADA; reporting to the Special Master and the EEOC on an annual basis on Wal-Mart’s efforts to accommodate individuals with disabilities; acting as the liaison between Wal-Mart and the Special Master; assisting in developing Wal-Mart’s ADA Policy; assisting in developing and implementing Wal-Mart’s ADA Training Program; resolving all employee appeals from a denial of a request for a reasonable accommodation; and, developing an ADA checklist for the use by the auditors as outlined in paragraph 77-79 below. The ADA Coordinator will report to the Special Master on an annual basis. The ADA Coordinator’s report shall include: a report on Wal-Mart’s efforts to provide reasonable accommodations for qualified individuals with disabilities, including the number of requests received and the number of requests granted or denied; a report on ADA training conducted; a copy of any notice published in the Associate Handbook and any Wal-Mart Today articles relating to reasonable accommodation or ADA issues; and, any other information the ADA Coordinator and the Special Master agree should be included. VIII. ABOLITION OF THE MATRIX Within six (6) months of the date of entry of this Consent Decree, Wal-Mart agrees to discontinue all use of the Matrix of Essential Job Functions (“Matrix”) and shall not utilize the Matrix or any substantially similar document in making any employment decision for the duration of this Consent Decree. Within six (6) months of the date of entry of this Consent Decree, Wal-Mart agrees to take all reasonable steps to destroy all copies of blank Matrix forms at their stores and distribution centers. Within six (6) months of the date of entry of this Consent Decree, Wal-Mart agrees to effectively disseminate the information about abolition of the Matrix to all of its supervisors, managers, and hiring committee members, concurrent with the abolition of the Matrix. Within six (6) months of the date of entry of this Consent Decree, Wal-Mart agrees to develop job descriptions for all jobs in its stores and distribution centers which are job related and consistent with actual job requirements. Wal-Mart agrees to, within fourteen (14) days of the entry of this Consent Decree, provide written notification to each managing official of each store and distribution center, nationwide, of this Consent Decree and that: (1) the Consent Decree requires the discontinuance of the Matrix within six (6) months; (2) the Matrix will be discontinued within six (6) months and no longer utilized in any fashion for any purpose after that date; and, (3) effective immediately, the Matrix should only be used after a conditional offer of employment is made. IX. ADA POLICIES AND PROCEDURES Within six (6) months of the date of entry of this Consent Decree, Wal-Mart agrees to replace its existing policies on the ADA with a consolidated policy which complies with the ADA and which will be reviewed and critiqued in writing by the Special Master. The ADA Policy will: include internal ADA complaint procedures; adopt a new policy and procedures for providing reasonable accommodation for individuals with disabilities, which complies with the ADA; require Wal-Mart’s managers to engage in the interactive process required by the ADA for qualified individuals with disabilities to determine an appropriate accommodation at the time a potential employee applies for a position with Wal-Mart, after Wal-Mart hires an employee, and during an employee’s employment with Wal-Mart; include the appeals procedures to the ADA Coordinator from any denials of requests for reasonable accommodations; and, explain that any decision about undue hardship in the provision of a reasonable accommodation shall be made by the ADA Coordinator. Wal-Mart shall effectively disseminate its new reasonable accommodation procedures and ADA policy by: posting an outline of the reasonable accommodations procedures and ADA policy in a conspicuous place at each worksite, where the other EEO and labor notices are posted; effectively notifying all current employees of the new policies and procedures; providing written and/or oral notification to all applicants that Wal-Mart follows a reasonable accommodation procedure, and that reasonable accommodations are available and the method for obtaining a reasonable accommodation; explaining, in the next-published Wal-Mart Associate Handbook, that Wal-Mart has established procedures for requesting a reasonable accommodation detailed in a separate written policy that can be accessed on Pipeline (Wal-Mart’s Intranet site for communicating with its employees) or by telephone request to the ADA Coordinator; making a copy of the ADA policy and reasonable accommodation procedures available on Wal-Mart’s Pipeline; including a notice of the new ADA policy and procedures on the Manager’s Workbench email with a reference to the Pipeline; notifying all new employees of its new ADA policy upon the employee’s hire; and, rescinding Wal-Mart’s ADA Manual and the video Recruit the Best with its attendant workbook. X. STAFF TRAINING AND DEVELOPMENT Within twelve (12) months of the entry of this Consent Decree, and on an annual basis for the duration of this Consent Decree, Wal-Mart agrees to provide ADA training for its management employees in stores and distribution centers, its personnel managers, and any individual involved in the hiring process at a store or distribution center. The annual ADA training shall include some interactive component. Wal-Mart agrees to invite a Commission representative and the Special Master to attend all ADA annual training sessions with reasonable notice. Wal-Mart agrees to include the following topics in all annual ADA training sessions: an overview of the ADA, Wal-Mart’s obligations under the ADA, and applicant and employee rights under the ADA; non-discrimination in hiring and recruitment; reasonable accommodation in the application and hiring process; procedures for addressing reasonable accommodation requests in the application and hiring process; examples of accommodations in the application and hiring process for people with disabilities, including people who are deaf or hearing impaired; awareness of issues affecting employees and applicants who have disabilities; that any decision about undue hardship in the provision of a reasonable accommodation shall be made by the ADA Coordinator; Wal-Mart’s commitment to meeting the requirements of the ADA; and, Wal-Mart’s commitment to engage in the interactive process required by the ADA for qualified individuals with disabilities to determine an appropriate accommodation at the time a potential employee applies for a position with Wal-Mart, after Wal-Mart hires an employee, and during an employee’s employment with Wal-Mart. Wal-Mart agrees to provide in-depth ADA training to its Regional Personnel Managers on an annual basis. Such training shall discuss the interplay between the ADA, Worker’s Compensation, and the Family and Medical Leave Act. The ADA Coordinator or the Regional Personnel Managers shall then provide ADA training in the regions. Wal-Mart agrees to develop a Computer-Based Learning Module addressing the ADA, including the Reasonable Accommodation Process, within twelve (12) months of the entry of this Consent Decree. Wal-Mart agrees that, within twelve (12) months of the entry of this Consent Decree, any employee who participates in the hiring process must first review a CBL training module and pass a test on the Reasonable Accommodation Process before he/she is allowed to participate in the hiring process. Certification of such training will be retained at the employee’s facility. Wal-Mart agrees to include training for all employees on the ADA in new hire orientation and other appropriate forums. Wal-Mart may use some of its recent training tapes made in Arizona in September, 2001, as part of the resolution of the contempt action in EEOC v. Wal-Mart Stores, Inc., CIV 98-0276 TUC WDB (Ariz.), so long as the portions on the Matrix are deleted. All personnel who attend the annual ADA training shall sign an attendance roster. The registry of attendance shall be retained by Wal-Mart for the duration of this Consent Decree and reported to the Special Master with Wal-Mart’s annual reports. During the term of this Consent Decree, Wal-Mart shall submit all proposed changes to its ADA Policy to the EEOC and the Special Master thirty (30) days prior to the proposed implementation date of the proposed change. Wal-Mart agrees that it shall discuss any objections the Commission or the Special Master may have with any proposed change and attempt to resolve the objection prior to implementing the proposed change. A Wal-Mart Executive Officer, or designee, shall make a videotape which shall be shown to each Wal-Mart employee on an annual basis: outlining Wal-Mart’s commitment to complying with the ADA; and, the value that individuals with disabilities bring to Wal-Mart. XI. RECORD KEEPING Wal-Mart shall retain all personnel records in accordance with 29 C.F.R. �1602.14. XII. POSTING OF NOTICE Within ninety (90) days of the entry of this Consent Decree, Wal-Mart will post the Notice attached as Exhibit G (“Notice II”) in all stores and distribution centers located in the United States of America. Notice II will be posted in the same approximate locations as the other labor and employment postings for the duration of this Consent Decree. Notice II shall be the same type, size, and style as Exhibit G. Within ninety (90) days of the entry of this Consent Decree, Wal-Mart will post a notice in a conspicuous location at every store and distribution center in the United States of America stating: “Please advise us if you need assistance in the application or hiring process to accommodate a disability. If you request, Wal-Mart will provide you a copy of its procedures for requesting a reasonable accommodation during the hiring process.” XIII. AUDITS Whenever a Wal-Mart unit or facility, including a store or distribution center, undergoes an annual audit, or any special audit, involving any personnel procedures, the auditors will utilize a checklist developed by the ADA Coordinator. Any audit that determines any unit or facility has been out of compliance with Wal-Mart’s obligations under this Consent Decree, including reasonable accommodation procedures, will be referred to the ADA Coordinator. The ADA Coordinator will review any recommendations proposed by the auditors, including whether the managers at the unit or facility require additional training. The ADA Coordinator shall make additional or different recommendations, if s/he deems it appropriate. The ADA Coordinator will compile a report of the audits referred to him or her, including any recommendations for improvement, and will provide such reports to the EEOC and the Special Master as part of the annual compliance report. The Commission and Special Master may review the audit reports for the purpose of determining if there has been non-compliance with this Consent Decree and, where such non-compliance is determined, the Commission may take enforcement action consistent with this Consent Decree and the ADA. XIV. PERFORMANCE EVALUATIONS Within six (6) months of the date of entry of this Consent Decree, Wal-Mart shall institute a procedure which evaluates managers and applicable human resources personnel on their compliance with the ADA and Wal-Mart’s new ADA policy. Such compliance will be measured by appropriate testing and other appropriate criteria which shall be developed by the ADA Coordinator. Understanding of and compliance with Wal-Mart’s ADA procedures shall be a line item on the manager’s standard performance evaluation. Wal-Mart agrees that the failure of any such Wal-Mart employee to implement or enforce Wal-Mart’s ADA policy should be reported and should result in appropriate action against the employee. XV. COMPLIANCE Wal-Mart agrees to provide annual compliance reports within thirty (30) days of the first anniversary of the entry date of this Consent Decree, and annually thereafter, to the EEOC and the Special Master. Wal-Mart agrees to provide a report of compliance including: a report of all activities of the ADA Coordinator, including any reports of approvals and denials of requests for reasonable accommodation; descriptions of all annual ADA training provided to any employee; copies of all notices, Associate Handbooks, and Wal-Mart Today articles relating to ADA issues; and, reports of audits of facilities, with respect to compliance with Wal-Mart’s ADA procedures. In the event that the Commission believes that Wal-Mart has failed to comply with any provisions(s) of this Consent Decree, it shall: notify Wal-Mart in writing of the alleged non-compliance by fax and by overnight mail to both the ADA Coordinator, the counsel, and the corporate officer who sign this Consent Decree on behalf of Wal-Mart, using the fax numbers and addresses shown in connection with their signatures below, and, afford Wal-Mart forty-five (45) business days after service of such notice to remedy the non-compliance. If Wal-Mart has not remedied the alleged non-compliance within forty-five (45) business days, the EEOC may petition the Court to enforce the terms of this Consent Decree at any time during which this Court maintains jurisdiction over this action. In the event the Court finds that Wal-Mart has violated this Consent Decree, the Court may order appropriate relief to remedy the non-compliance, including attorneys’ fees, daily fines, and appropriate injunctive relief. The parties shall bear their respective attorneys’ fees and costs incurred in this action up to the date of entry of this Consent Decree. XVI. DURATION OF CONSENT DECREE This Court shall retain jurisdiction of this action for a period of four (4) years after entry of this Consent Decree. This Consent Decree shall expire by its own terms at the end of four (4) years without further action by the parties. ENTERED this ______ day of ______ 2001. HONORABLE GARLAND E. BURRELL JR. UNITED STATES DISTRICT JUDGE APPROVED AND CONSENTED TO THIS _____ DAY OF DECEMBER, 2001: NICHOLAS M. INZEO Acting Deputy General Counsel GWENDOLYN YOUNG REAMS Associate General Counsel EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 1801 L Street, N.W. Washington, D.C. 20507 WILLIAM R. TAMAYO Regional Attorney JONATHAN T. PECK Supervisory Trial Attorney LYNN L. PALMA Senior Trial Attorney EQUAL EMPLOYMENT OPPORTUNITY COMMISSION San Francisco District Office 901 Market Street, Suite 500 San Francisco, California 94103 C. EMANUEL SMITH Acting Regional Attorney MARY JO O’NEILL Supervisory Trial Attorney EQUAL EMPLOYMENT OPPORTUNITY COMMISSION Phoenix District Office 3300 N. Central Ave., Suite 690 Phoenix, Arizona 85012 (602) 640-5044 (telephone) (602) 640-5009 (facsimile) Attorneys for Plaintiff ROBERT K. RHOADS Senior Vice President General Counsel and Secretary Wal-Mart Stores, Inc. 702 S.W. 8th Street Bentonville, Arkansas 72716 (501) 273-4505 (telephone) (501) 277-5991 (facsimile) GREGORY S. MUZINGO Senior Corporate Litigation Counsel Wal-Mart Stores, Inc. 702 S.W. 8th Street Bentonville, Arkansas 72716 (501) 273-4505 (telephone) (501) 277-5991 (facsimile) Attorneys for Wal-Mart Stores, Inc.

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