Wal-Mart's $640M Deal May Be Largest Wage Settlement Ever
The behemoth retailer Wal-Mart announced Tuesday that it has agreed to settle 63 cases pending in courts throughout the country for at least $352 million, with payments ultimately reaching $640 million.
The high end would depend on how many employees submit claims in the 42 states included in the settlement. Lawyers are expected to collect tens of millions of dollars in the deal, though fees have not yet been determined.
Wal-Mart has long been criticized for its wage practices, with unions complaining that the world’s largest retailer is able to keep prices low by cheating workers, the New York Times reports. But the paper notes that the company has long argued that it’s already corrected wage problems that it blames on local managers, who, acting without authority, forced employees to work off the clock, erase hours and skip breaks.
The amount of individual payouts isn’t yet known, though it could involve several hundred dollars for employees submitting claims. Another dozen wage-and-hour cases remain pending against the company.
The massive labor deal comes on the heels of a $54.25 million settlement that covers 100,000 current and former employees in Minnesota who complained about the company forcing them to skip breaks. Wal-Mart also is appealing other jury verdicts, including $172 million awarded to workers who were forced to miss meal breaks.
Also see:
Bloomberg: “Wal-Mart Will Pay Up to $640 Million in Settlement “
