Friday, May 14, 2010

INDUSTRY NEWS: Wal-Mart Settles Wage Lawsuit

Wal-Mart Stores Inc. has agreed to pay as much as $86 million to settle a class-action lawsuit that accused the retailer of failing to pay vacation, overtime and other wages to thousands of former workers in California. The settlement requires a minimum payout of $43 million. The original complaint came in 2006, saying that the retailer failed to pay a variety of wages to former workers as required under California law.

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WAL-MART SETTLES WAGE LAWSUIT


NEW YORK – Wal-Mart Stores Inc agreed to pay as much as $86 million to settle a class-action lawsuit accusing the retailer of failing to pay vacation, overtime and other wages to thousands of former workers in California. About 232,000 people will share in the settlement, which was disclosed in a US federal court filing.

The settlement requires a minimum payout of $43 million, and "far exceeds other recent settlements" involving Wal-Mart, the filing shows. The accord still requires court approval. The world's largest retailer was accused in the original 2006 complaint of failing to pay a variety of wages to former workers as required under California law. In agreeing to settle, Wal-Mart did not concede that any wages remained unpaid. The settlement is separate from Wal-Mart's 2008 agreement to pay as much as $640 million to settle 63 federal and state class-action lawsuits alleging the company deprived workers of wages. Last December, Wal-Mart also agreed to pay $40 million to settle a class-action lawsuit over wages in Massachusetts. The $86 million equals roughly two days of after-tax operating profit for Wal-Mart, regulatory filings show.

SOURCE: Lawday

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