Wal-Mart Stores Inc. of Bentonville agreed Tuesday to pay $5.3 million in back wages, damages and penalties for violating federal overtime rules.
More than 4,500 employees nationwide will receive $4.8 million in back wages and damages after an investigation by the U.S. Department of Labor’s Wage and Hour Division found Wal-Mart violated the federal Fair Labor Standards Act’s provisions, according to a U.S. Department of Labor news release Tuesday. Wal-Mart also agreed to pay $463,815 in penalties.
The violations involved current and former vision center managers and asset protection coordinators at Wal-Mart Discount Stores, Wal-Mart Supercenters, Neighborhood Markets and Sam’s Club warehouses, the news release said.
Wal-Mart didn’t pay these employees overtime and considering them to be exempt from the FLSA’s overtime requirements, the news release said.
"The Labor Department’s investigation found that the employees are nonexempt and consequently due overtime pay for any hours worked beyond 40 in a week," the news release said.
A third-party administrator will disburse the money to the affected employees.
This isn’t the first time Wal-Mart has been investigated by the Department of Labor. In 2007, it agreed to pay a $34 million in back wages and interest to employees as part of a settlement with the Department of Labor.
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