You are right to be concerned. In the real world, showing up is the most critical element for holding on to employment, and the employer here has been caused to have doubts about whether you can be relied on to meet that essential standard. You don't have any legal rights in this circumstance, so you will have to rely on your powers of persuasion and diplomacy to cause the employer to hang in with you.
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As an at-will employee, Wal-Mart can decide to not hire you for any lawful reason, as seems to be the case here, so you have no legal rights. But, certainly follow up with them, and submit any documentation of your relationship to the deceased and attendance at the funeral you can. You may get a sympathetic ear.
No, you have no basis to sue. Most states in the US, including NY, are "at will" states. This means that the employer can choose to fire you (or not hire you) for virtually any reason, as long as it is not an illegal one. While I am sure your funeral was legitimate, people often use funerals as excuses to miss work. Walmart is no doubt concerned that you will be a problem in terms of showing up, especially since this happened before you even started. I wouldn't be particularly surprised if you don't hear from them again. You might want to politely follow up with your contact at the company.
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NY is an employment at will state. You can be fired or not hired if you do not have a contract providing they do not discriminate.
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