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Walmart Slapped With $4.8M Bill for Unpaid Wages

About 4,500 employees weren't paid for overtime

By Kevin Spak,  Newser Staff

Posted May 2, 2012 8:07 AM CDT

(Newser) – The Labor Department has ordered Walmart to pay $4.8 million in back wages to around 4,500 workers it short-changed between 2004 and 2007. Over that span, Walmart had refused to pay overtime to its vision-center managers and asset-protection coordinators, for some reason believing them exempt from federal regulations requiring overtime pay, the Washington Post explains. The government disagreed, and has been negotiating since 2007 on how much it should pay in retribution.

The final amount isn't much of a windfall; asset-protection coordinators will only pocket an average of $290 each, while vision-center managers will get an average $2,300. Walmart will also pay $464,000 in fines. "Let this be a signal to other companies that when violations are found, the Labor Department will take appropriate action," Labor Secretary Hilda Solis said. The embarrassment comes as Walmart is dealing with an explosive bribery scandal that has prompted a criminal investigation.

In this Nov. 14, 2011 file photo, shopping carts are photographed outside the Wal-Mart store in Mayfield Hts., Ohio.
In this Nov. 14, 2011 file photo, shopping carts are photographed outside the Wal-Mart store in Mayfield Hts., Ohio.   (AP Photo/Amy Sancetta, File)
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COMMENTS
Showing 3 of 5 comments
Twiny
May 2, 2012 5:07 PM CDT
Ow, a $464 thousand dollar fine? That will ruin the balance sheet for the next quarter. "Let this be a signal to other companies that when violations are found, the Labor Department will take appropriate action," Labor Secretary Hilda Solis said. I sure that statement has executives who are screwing their employees shaking in fear. That kind of fine for a multi-billion dollar company like Wal-Mart is laughable, and makes the Secretary look like an idiot. The fact that it took FIVE YEARS to settle this doesn't make the Secretary look any brighter.
Toon
May 2, 2012 12:09 PM CDT
The fine is way too small. It's lees than 10% which means the interest on the stolen money just about covers the cost of the fine. What Walmart (and other businesses) has learned is that if they are caught they come out even but if they get away with it they come out ahead.
793tango
May 2, 2012 11:19 AM CDT
Where are the conservatives howling about how Walmart is being treated unfairly?
 

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