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California Reaches Agreement With Wal-mart

Settlement of $3.9 million for unpaid wages to be given to California workers


Los Angeles, CA -- (ReleaseWire) -- 09/06/2007 -- The total amount of payment include the penalties for waiting time of the employees due to Wal-Mart's late payment of their final wages. Specifically according to the terms stipulated in the settlement agreement, the waiting time penalties will be given for employees who are no longer in the employ of the company but have left without receiving their overtime payments yet.

Many have already been provided with their checks including the overtime payments and interests. Remaining payments are yet to be issued, as stipulated in the agreement, in 45 days time.

As part of the agreement, Wal-Mart also agreed to pay civil penalties to the state government of California amounting to $198,900. The payments concern every worker from California that was employed at Wal-Mart from February 1, 2002 to January 19, 2007.

According to Commissioner Bradstreet, she was quite pleased with the results or turn out of the settlement agreement. She declared this, “On behalf of the 50,000 workers who were inadvertently underpaid overtime and other wages."

Furthermore, she ensured that all of the workers from California are compensated fully and completely on all of the payments in overtime, penalties and interests owed by Wal-Mart to them. They are seeing to it that all of the pending payments will be provided for, as agreed upon.

It was during the early months of 2005 when Wal-Mart advised the State of California Labor Commissioner in a voluntary manner that it has experienced errors in the payroll processes. This has resulted in underpayment of its employees' overtime and the other wages due.

Along with the notification, Wal-Mart also assured that it has serious intentions of correcting the problems they have been encountering in the payroll calculation. It is also committed to pay all of the workers that have been affected by such problems for every penny they have failed to pay.

Commissioner Bradstreet enthused that they have always encouraged voluntary observance with the labor laws of California. She added, "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 how they can work with us to properly compensate workers as well as meet legal requirements."

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