Wal-Mart Settles Litigation for Up to $640 Million

By Evan Mix

Published on January 07, 2009

On December 23, Wal-Mart agreed to settle 63 class-action lawsuits alleging labor violations in 14 different states throughout the U.S. Under the terms of the agreements, the world's largest retailer will pay at least $352 million, and it could pay up to $640 million depending on claims submitted in the lawsuits.

Judges in each affected jurisdiction must approve the settlements individually before they are finalized. In addition to payment, the company will continue using electronic monitoring technology and other oversights to prevent future violations and protect the rights of employees.

The lawsuits allege wage and hour abuses against employees, including forcing employees to work off the clock, preventing them from taking mandated breaks, and failing to pay for overtime hours. These are the latest in a series of large settlements for Wal-Mart, including a recent $54.3 million agreement with employees in Minnesota. That settlement was reached after a judge ruled that the company had violated Minnesota wage and labor laws over two million times.

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