Labor law claims against Wal-Mart are not really news anymore. However, this time, there was not way out. Wal-Mart will have to pay US$4.8 million in back-wages and damages to 3,700 current and former employess in the United States for unpaid overtime, according to the US Department of Labor.
The unpaid overtime referred to managers and security personnel of the company's stores, which were improperly considered to be exempt from overtime pay.
A spokesperson for Wal-Mart said that the company has immediately corrected the way it classified its employees when the allegations were first raised.
Nancy Leppink, head of the Labor Department's Wage and Hour Division, said she hoped the case would put other employers on notice that they can't avoid paying overtime by improperly classifying their workers as exempt.