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"We're being fair to the associates." Right, ask the other associates what they think of this.
This should be the exception that MAKES the rule.
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Wal-Mart's plan is supposed to be a stop-gap for their employees which can't afford their own medical, which is why they're seeking to recoup losses in the case of an applicant winning suit.
She can still cover her expenses even after the case (assuming legal fees did not run them dry), it just looks really bad because she's mentally stunted and her son just died in Iraq.
If I was Wal-Mart I would not attempt to be flexible no matter how bad this case may be, because it gives a lot of other people room to try and wiggle out of contract with their sob stories.
This is really bad, and it sucks for the Shanks, but I have to side with Wal-Mart.
Jam it back in, in the dark.