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California Class Action Wage and Hour Lawsuit Settlement--Wal-Mart to Pay $86 Million

May 12, 2010

In a recent blog, our Riverside, California Employment Attorneys reported on an $85 million Wal-Mart settlement from last year, involving around 3 million hourly workers in 30 states--who all sued for allegations of wage and hour law violations.

Wal-Mart made million dollar class-action headlines again today, after agreeing to another settlement--to pay former California employees as much as $86 million in a California class-action wage and hour lawsuit settlement.

According to the lawsuit, Wal-Mart Stores, Inc., the largest retailer in the world, was accused in this case of violating wage and hour laws by not compensating former workers properly under California law. Wal-Mart allegedly failed to pay the workers for overtime and vacation wages they earned before leaving the company, and neglected to pay the employee earnings in a timely manner as specified by the state of California.

The former employees accused Wal-Mart of manipulating their hourly time sheets to get out of paying overtime, as well as making them wait for days or even weeks to pay them for vacation wages after they left the company. According to employment law in California, if an employee is fired, all wages that are owed to them should be paid within 72 hours. If an employer violates that law, they can be required to pay as much as 30 days of wages to the workers.

The settlement will reportedly pay out a minimum of $43 million that will be shared by about 232,000 people, and is reported to represent a huge result for class-action members. According to Business Week, the settlement includes $12 million in unpaid vacation wages and $74 million in potential interest and penalties on wages that were unpaid. The actual amount that Wal-Mart will pay depends on how many former employees participate in the settlement--but it is estimated that the world's largest retailer will pay at least $43 million under the settlement agreement.

In cities throughout Orange County, California, contact Howard Law, PC today.

Wal-Mart in $86 Million Settlement of Lawsuit, Reuters, May 12, 2010

Wal-Mart Agrees to Pay $86 Million for Wage Claims (Update1), Bloomberg Businessweek, May 12, 2010

Related Web Resources:

California Department of Industrial Relations: Division of Labor Standards Enforcements (DSLE): Wage and Hours