By Jonathan Stempel and Jessica Wohl Reuters updated 6/13/2011

NEW YORK/CHICAGO — Wal-Mart Stores Inc has lost its appeal of most of a $187.6 million verdict for Pennsylvania hourly workers who accused the world's largest retailer of denying them meal and rest breaks.

A three-judge panel of the Superior Court of Pennsylvania on Friday said there was sufficient evidence for Philadelphia jurors in 2006 to conclude that Wal-Mart's practices violated state wage and hour laws. It also said Wal-Mart's own internal review uncovered violations regarding "off-the-clock" work.

The case was brought on behalf of about 187,000 current and former Wal-Mart workers in Pennsylvania from 1998 to 2006.
They contended that the Bentonville, Arkansas-based company's engaged in improper practices to enhance productivity, boost profit and cut costs. "The record reflects testimony and documentary evidence suggesting that because of pressure from the home office to reduce labor costs and the availability of significant bonuses for managers based on store profitability, Wal-Mart's scheduling program created chronic understaffing, leading to widespread rest-break violations," the appeals court said.