Thursday, December 11, 2008

Wal-Mart Settles Another Massive Wage & Hour Claim

Walmart_1 We don't do much wage and hour stuff on this blog because these cases tend to come down to whether nurses on standard-size ambulances are exempt from overtime pay.  But Wal-Mart sure got another lesson on why it should not ignore the Fair Labor Standards Act (FLSA) (Marica previously wrote about this case here).

According to the BNA Daily Labor Report:

Wal-Mart Stores Inc. . . . announced that it has agreed to pay up to $54.25 million to settle a class action lawsuit that had alleged that it had violated Minnesota's labor laws by requiring employees to work off the clock during training (Braun v. Wal-Mart Inc., Minn. Dist. Ct., No. 19-CO-01-9790, settlement announced 12/9/08).

In addition to a multimillion dollar payout to workers, the settlement . . .  includes terms providing that the retailer will pay the state a civil penalty, an amount that is expected to be the largest wage and hour civil penalty in state history . . . .

I'm sure this settlement does not sit will with the cheap-skates over at Wal-Mart, but they got more where this one comes from, with an estimate of 80 such pending suits in 2007.

Mmm, maybe they could be even more profitable by not ripping off their employees on wages and benefits and avoiding all of this endless labor and employment litigation.

Just a thought.


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