The case, In re: Wal-Mart Stores Inc. Wage and Hour Litigation, was originally filed in the U.S. District Court in the Northern District of California. This case is separate from Walmart's 2008 payment of $640 million to settle 63 federal and state class-action lawsuits which also alleged various wage and hour labor violations.
This Walmart settlement will total between $43 million and $86 million, plus the costs associated with calculating the wages. The settlement total will represent between one and two days of net profit for Walmart. The Walmart settlement includes $12 million in vacation pay and $74 million in unpaid wages to terminated workers. Walmart does not concede that any wages remained unpaid, according to Tuesday's filing.
Walmart also agreed to pay $40 million to settle a Massachusetts class-action wage and hour labor lawsuit.
Though Walmart has agreed to the settlement, the company does not agree with the plaintiff's argument that wages were not paid. Walmart spokesman, Greg Rossiter, declined to comment on the settlement.
The case comes from two lawsuits against the retailer filed in federal court in Northern California and consolidated four years ago. A judge must still sign off on the settlement.
- Wal-Mart To Pay $86 Million To Settle Lawsuit (NPR)
- Wal-Mart Store to pay up to $86M to settle lawsuit (AP)
- Wal-Mart In $86 Million Settlement Of Wage Lawsuit (Reuters)
- Wage and Hour Laws FAQ (FindLaw)
- Unpaid Wages and Overtime (provided by Bohrer Law Firm, A Limited Liability Company)
- Wage & Benefits FAQ (provided by Litt, Estuar, Harrison & Kitson, LLP)