Finance News & Insights

What firms can learn from Walmart’s $5 million OT settlement

The world’s largest employer is no stranger to run-ins with the government over its employment practices, but the DOL came down especially hard on the retail giant recently.

And employers of all stripes can learn a few things about what to avoid from Walmart’s costly overtime settlement.

According to an investigation by DOL, a number of different stores that are part of Walmart Stores, Inc., classified current and former vision center managers and asset protection coordinators as exempt. Because of this misclassification, Walmart didn’t pay them overtime for any hours they worked over 40 in a single week, which is a clear violation of the federal Fair Labor Standards.

Result: Walmart agreed to settle the lawsuit for $4.83 million. On top of back wages and damages, the retailer was hit with $463,815 in civil penalties for the repeated nature of the violations.

 

 

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  • Carole

    I see a number of small (particularly religious and non-profit organizations who consider their administrative assistants as exempt. These persons do not meet the criteria for exempt because “The employee’s primary duty” does not include “the exercise of discretion and independent judgment with respect to matters of significance.”

    I have been asked by some of these persons about how to file a complaint (they do not work in my organization). Texas is very pro-business, so the state has not been much help in getting this information.

    Anyone?

  • Anne

    Wal Mart will never be the same since old man Walton is gone. I can remember when the employees loved Mr. Walton. He was the best person to work for. Now it’s just greed as usual in the back office.