The California Labor Commissioner has reached an agreement with Wal-Mart Stores, Inc., resolving charges that the retail giant underpaid overtime and other wages. Under the terms of the settlement, Wal-Mart will pay $3.9 million in overtime, waiting time penalties, and interest to approximately 50,000 current and former Wal-Mart workers in California. Earlier this year, Wal-Mart shelled out $33 million to settle violations of federal wage and hour law, stemming from the same payment practices.
The case was initiated two years ago when Wal-Mart voluntarily notified the Labor Commissioner and federal authorities that errors in the company’s payroll processes led to the underpayment of overtime and other wages.
In connection with the California portion of the settlement, the Labor Commissioner stated: “As always, our goal is to encourage voluntary compliance with California labor laws. By its actions in this case, Wal-Mart has set a positive example for other employers who may be out of compliance because it illustrates they can work with us to properly compensate workers as well as meet legal requirements.”
Additional Resources:
Division of Labor Standards Enforcement Website
Wage and Hour: More Legal Woes for Wal-Mart
The HR Management & Compliance Report: How To Comply with California Wage & Hour Law, explains everything you need to know to stay in compliance with the state’s complex and ever-changing rules, laws, and regulations in this area. Coverage on bonuses, meal and rest breaks, overtime, alternative workweeks, final paychecks, and more.