Walmart Agrees to Pay $5.3 Million in Back Wages, Damages and Penalties

May 10, 2012

Last Tuesday, Bentonville, Arkansas based super-retailer Walmart agreed to pay out $5.3 million for violating the federal government's overtime rules. 4,500 plus Walmart employees across the U.S. will collect $4.8 million in damages and back wages, and the retailer will also pay nearly $500,000 in penalties.

Why is Walmart being hit?

The federal Fair Labor Standards Act requires companies to pay certain employees overtime. Walmart failed to pay managers and coordinators of various centers and warehouses for work done more than 40 hours a week. A U.S. Department of Labor Wage and Hour Division investigation found that, in failing to pay out this overtime, Walmart violated the law. A neutral "third-party" administrator will pay out the damages and back pay to the employees.

This isn't Walmart's first scrap with the Department of Labor. Five years ago, following a separate Department of Labor investigation, the company paid out $34 million in interest and back wages to workers as part of a different settlement.

Wage and hour rules can be complicated.

If you've been the victim of wage-related mistreatment, you may not even be aware that you were unfairly treated. Even if your employer has a history of such mistreatment which you think or they say may have been rectified, it pays to investigate potential "red flags." If you suspect that you may have been slighted -- or if you are simply confused -- connect with the powerful team at Joseph & Kirschenbaum. We can teach you about your rights and ensure that your employer treats you fairly for the hard work and good services that you provide.

Call 1-866-348-7394 for more information. Our firm has represented clients in some of the most complicated and news-worthy wage and hour cases of the past several years - including cases involving billions of dollars of potential overtime pay on the line.