According to Reuters, Wal-Mart has agreed to pay $4.8 million in back wages to thousands of employees for unpaid overtime. The settlement comes after a probe by the U.S. Department of Labor which found that Wal-Mart had violated federal law regarding overtime pay.
In addition to the back pay, Wal-Mart will also pay $463,815 in civil fines. According to the Labor Department, Wal-Mart failed to pay overtime to certain employees, considering them to be exempt from overtime requirements, when they were in fact not exempt.
Wal-Mart said it has already adjusted its pay practices, determining that back wages should be paid for 3,700 employees in two roles.
According to Wal-Mart spokesman, the settlement involves employees serving in the roles of Asset Protection Coordinator and Vision Center Manager. About 1700 employees in the role of Asset Protection Coordinators are eligible for about $290 on average in back pay, while nearly 2000 employees in the latter role are eligible for an average of $2300. Wal-Mart, the world’s largest retailer, is also facing allegations that it covered up bribery at its Mexican unit.
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