The U.S. Department of Labor has announced that Wal-Mart Stores, Inc. will pay over $33 million in back wages to resolve errors in calculating overtime for 86,680 employees nationwide. According to the DOL, Wal-Mart brought the problem to the agency’s attention after an internal audit raised concerns regarding overtime computations, particularly with respect to incentives and other premium payments. The audit also revealed that the company failed to pay overtime premium pay to certain nonexempt salaried interns, manager trainees, and programmer trainees.
But Wal-Mart’s legal problems stemming from these overtime violations aren’t over, as the California Labor Commissioner has stepped into the fray, suing Wal-Mart to recover any additional wages that might be owed to California employees as a result of the overtime violations. In response to the California suit, Wal-Mart said it is exploring a settlement with the state that would include a penalties assessment.
Paying Overtime: 10 Key Exemption Concepts
Only one thing really matters in the determination as to whether or not an employee is exempt: The duties the employee performs. Learn how to avoid costly, preventable mistakes with our free White Paper, Paying Overtime: 10 Key Exemption Concepts.
Additional Resources:
Who’s Entitled to Overtime?: How to Avoid Mistakes When Classifying California Employees, an exclusive Employer Guide from the California Employer Advisor