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August 24, 2010
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Employment Law News

 

Wal-Mart Workers to Receive More Than $33M In Back Wages

The U.S. Department of  Labor announced today that Wal-Mart Stores Inc. will pay over $33 million in back wages to resolve issues that arose under the Fair Labor Standards Act (FLSA) concerning how the company computed overtime pay. The agreement covers 86,680 employees who worked for the company from Feb. 1, 2002 to Jan. 19, 2007.

"This settlement provides $33 million in back wages, plus interest, to Wal-Mart workers, and the company has taken corrective action to prevent this from happening again," said Assistant Secretary of  Labor for Employment Standards Victoria A. Lipnic.

To finalize the agreement, the Labor Department filed a complaint today in the U.S. District Court for the Western District of Arkansas, Ft. Smith Division, against Wal-Mart Stores Inc. alleging violations of the FLSA overtime provisions. A consent judgment ordering the company to pay back wages and enjoining it from further violations was filed at the same time. The consent judgment was approved by the court this morning.

Wal-Mart brought this matter to the attention of the Department of Labor after an internal audit raised concerns regarding overtime computations. The issues involve how Wal-Mart treated incentives and other premium payments in the calculation of employees' overtime pay. The agreement also addresses payment of overtime to certain non-exempt salaried interns, manager trainees, and programmer trainees. Read more at dol.gov.


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Did You Know?    
 
 
About Wrongful Termination employment
Wrongful termination is a term that generally refers to a person being fired illegally. Many terminations that people think of as "wrongful" aren't illegal. In most states, employment is "at will". This means that the employer can fire the employee for no reason or any reason. However, there are two main reasons why a termination may be illegal- discrimination and contracts.

 


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Employment Lawyers.com Terms

 


Today's Terms

Affirmative Action

Definition:
Positive action to accomplish the purpose of a program designed to increase the employment opportunities of certain groups. It may involve goals, timetables, or specifically outlined steps to be undertaken to assure that objectives are reached.

Vesting

Definition:
Ownership interest in your pension plan benefits and Company matching contributions under the savings program. You have an irrevocable right to a benefit when you are fully vested.

Title VII of the Civil Rights Act of 1964

Definition:
Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §2000e, et seq., prohibits discrimination in employment on the basis of race, sex, national origin and religion. It also is unlawful under the Act for an employer to take retaliatory action against any individual for opposing employment practices made unlawful by Title VII or for filing a discrimination charge or for testifying or assisting or participating in an investigation, proceeding, or hearing under Title VII.

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Employment Hot Topics

 
Topics Related to Employment:

  • Collective Bargaining
  • Employment Discrimination
  • Unemployment Compensation
  • Pensions
  • Workplace Safety
  • Worker's Compensation

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