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Friday, January 26, 2007

Wal-Mart Agrees to Pay $33.5 million in roll-Backwages

Wal-Mart agreed to pay out $33.5 million in back wages and interest as part of a settlement of a federal lawsuit involving over eighty thousand workers. 

Wal-Mart was accused of failing to pay time-and-a-half rated pay and premium pay to workers, and managers when they worked more than 40 hours per week.  Accusations also claimed that Wal-Mart had violated Fair Labor Standards Act requirements in its calculation of base wages.  There were also over 40 state lawsuits.

Wal-Mart's lawsuit fell under older labor laws but recent changes in policy make the lines of overtime pay requirements very blurry and may trigger more suits against companies for failing to pay overtime for employees that are considered salaried.