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July 20, 2010
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Employment Law News

 

Wal-Mart Workers to Receive More Than $33M In Back Wages

The U.S. Department of  Labor announced today that Wal-Mart Stores Inc. will pay over $33 million in back wages to resolve issues that arose under the Fair Labor Standards Act (FLSA) concerning how the company computed overtime pay. The agreement covers 86,680 employees who worked for the company from Feb. 1, 2002 to Jan. 19, 2007.

"This settlement provides $33 million in back wages, plus interest, to Wal-Mart workers, and the company has taken corrective action to prevent this from happening again," said Assistant Secretary of  Labor for Employment Standards Victoria A. Lipnic.

To finalize the agreement, the Labor Department filed a complaint today in the U.S. District Court for the Western District of Arkansas, Ft. Smith Division, against Wal-Mart Stores Inc. alleging violations of the FLSA overtime provisions. A consent judgment ordering the company to pay back wages and enjoining it from further violations was filed at the same time. The consent judgment was approved by the court this morning.

Wal-Mart brought this matter to the attention of the Department of Labor after an internal audit raised concerns regarding overtime computations. The issues involve how Wal-Mart treated incentives and other premium payments in the calculation of employees' overtime pay. The agreement also addresses payment of overtime to certain non-exempt salaried interns, manager trainees, and programmer trainees. Read more at dol.gov.


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Did You Know?    
 
 
About at will employment
In certain states, employers do not have the right to terminate employees "at will" if the termination violates public policy, an implied employment contract, or an implied covenant of good faith and fair dealing.

 


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Employment Lawyer.com Terms

 


Today's Terms

Uniformed Services Employment and Reemployment Rights Act

Definition:
The Uniformed Services Employment and Reemployment Rights Act seeks to ensure that members of the uniformed services are entitled to return to their civilian employment upon completion of their active duty military service.

Job Coach

Definition:
A person hired by the placement agency or provided through the employer to furnish specialized on-site training to assist an employee with a disability in learning and performing a job and adjusting to the work environment.

Undue Hardship

Definition:
With respect to the provision of an accommodation, significant difficulty or expense incurred by a covered entity, when considered in light of certain factors. These factors include the nature and cost of the accommodation in relation to the size, resources, nature, and structure of the employer's operation.

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Topics Related to Employment:

  • Collective Bargaining
  • Employment Discrimination
  • Unemployment Compensation
  • Pensions
  • Workplace Safety
  • Worker's Compensation

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