Wal-Mart settles dozens of worker class-action lawsuits
The retail giant will pay as much as $640 million to settle dozens of wage-and-hour class-action suits across the U.S. The agreement excludes a California case under appeal.
Wal-Mart Stores Inc. said Tuesday that it would pay as much as $640 million to settle dozens of wage-and-hour class-action lawsuits across the nation that accused the world's largest retailer of cheating hourly workers and forcing them to work through breaks and off the clock. Wal-Mart has faced numerous accusations in recent years that it has engaged in illegal wage practices such as shortchanging workers on overtime pay and not allowing them to take lunch breaks. "Many of these lawsuits were filed years ago, and the allegations are not representative of the company we are today," Tom Mars, Wal-Mart's executive vice president, said in a statement.The cases being settled, 63 in all, involve thousands of current and former Wal-Mart employees and were brought by various groups of lawyers. A similar case in California, in which Wal-Mart was ordered to pay $172 million, was not included in the settlements and is under appeal.Lawyers for the plaintiffs could not be reached Tuesday, but some released statements saying they believed the settlements set a standard for other companies.
"We are equally pleased that Wal-Mart has made tremendous strides in wage-and-hour compliance and that it has implemented and agreed to continue to follow state-of-the-art compliance programs," said Frank Azar, co-lead counsel in 14 states. "We are pleased with this settlement and believe it is fair and reasonable for our clients."Industry experts said Wal-Mart probably agreed to settle as a good-faith effort, especially as it ushers in new Chief Executive Mike Duke on Feb. 1.
Read Entire Article: LA Times
Sunday, January 4, 2009
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