Wal-Mart agrees to pay $640M for wage cases

wal-mart to pay wage cases

Wal-Mart agreed Tuesday to pay as much as $640 million to settle allegations that the company didn’t pay workers for overtime or let them take breaks.

The world’s largest retailer, which has more than 1.4 million employees, said the amount it pays will depend on how many claims are submitted by eligible workers and could range from $352 million to $640 million.

“After many years of hard fought litigation, the parties have reached an agreement that values the work of Wal-Mart’s employees by providing both economic and injunctive relief,” said Carolyn Burton of the Mills Law Firm, co-lead counsel in a group of 35 cases consolidated in Nevada and cases covering four other states, in a press release issued by Wal-Mart.

Wal-Mart labor critics welcomed the settlement but said it gives no indication the company is changing its ways. The company faces 63 lawsuits over wage-and-hour-violations. Wal-Mart Watch Executive Director David Nassar said many workers still suffer mistreatment.