Wednesday, December 9, 2009

Wal-Mart Settles State Lawsuit Alleging Employee Mistreatment: Retailer Coughs Up $40 Million to Pay More Than 87,000 Staffers

By: Roseanna Sonnenfeld


      In 2001, there were claims of employees in Massachusetts that Wal-Mart denied them rest and meal breaks, manipulated time cards and refused to pay overtime.  Finally after several years of working through these arguments, the retailer has agreed to pay $40 million to 87,500 staffers.  This is a huge increase from when the company originally agreed to pay only $3 million in a deal with the state prosecutors.


      I think that Wal-Mart getting this situation resolved is definitely in the best interest of the company.  It is sad to hear that this happened even before the economy started going downhill, that Wal-Mart was short handing people while the company was still doing well financially.  It is interesting to hear that even though it is a huge amount of $40 million that will settle this, it is split up to people getting as low as $400.  Doing what this specific Wal-Mart company did in Massachusetts shows low value in how they treat their employees.  Wanting the money that they earned as employees is only fair.  Hopefully because of this litigation, this Wal-Mart company has learned the value of treating their employees with importance. 



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