WAL-MART SETTLES OVERTIME CLASS ACTION FOR $40 MILLION
Wal-Mart agreed to settle a class action suit by as many as 87,000 current and former associates in Massachusetts for $40 million. The suit, filed in 2001, alleged that Wal-Mart refused to pay overtime, denied rest and meal breaks, and changed time cards. Each class member will receive between $400 and $2,500. This settlement comes on the heels of Wal-Mart agreeing to settle 63 other state and federal class actions suits for up to $640 million.
Practice pointer. As the world's largest retailer, Wal-Mart's settlement numbers are extremely large. However, as I have discussed before, there are numerous lawsuits being filed weekly in Alabama against much smaller companies claiming overtime is due to employees. I am involved in a number of these cases, and they are worrisome to small business's because of the time it takes to gather information, the potential for liquidated damages, and the fact that plaintiff's are entitled to attorney's fees if they are successful. I would strongly urge all companies to audit how they classify their employees to make sure they are in compliance with wage and hour laws.
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