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Wal-Mart Stores, Inc.

San Francisco, CA: (Aug-14-07) The California Labor Commissioner brought charges against Wal-Mart Stores, Inc., alleging that the store underpaid its employees when it came to doing overtime work. The suit was filed on behalf of almost 50,000 workers who were inadvertently underpaid overtime and other wages.

In a settlement reached, Wal-Mart Stores, Inc. agreed to pay more than $3.9 million in overtime, waiting time penalties and interest to approximately 50,000 employees, and civil penalties to the state of California. The suit began when Wal-Mart voluntarily notified the California State Labor Commissioner in early 2005 that errors in the company's payroll processes led to the underpayment of overtime and other wages. It further said that it intended to correct the payroll calculation problem and pay all affected workers no matter how small the amount of underpayment. In some cases, the underpayments may amount to just a few dollars.

The settlement includes payment of waiting time penalties to employees for late payment of final wages. Under the terms of the settlement agreement, waiting time penalties will be provided to employees who are no longer working for Wal-Mart but left before receiving their overtime pay. Many of the employees have already received checks for overtime and interest, with remaining payments to be issued within 45 days, according to the agreement. Further, as part of the settlement agreement, Wal-Mart agreed to pay $198,900 in civil penalties to the State of California. The payments affect all California workers who were employed by Wal-Mart from February 1, 2002 through January 19, 2007. [BUSINESS WIRE: WALMART OVERTIME]

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Published on Aug-15-07


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