What firms can learn from Walmart’s $5 million OT settlement
The world’s largest employer is no stranger to run-ins with the government over its employment practices, but the DOL came down especially hard on the retail giant recently.
And employers of all stripes can learn a few things about what to avoid from Walmart’s costly overtime settlement.
According to an investigation by DOL, a number of different stores that are part of Walmart Stores, Inc., classified current and former vision center managers and asset protection coordinators as exempt. Because of this misclassification, Walmart didn’t pay them overtime for any hours they worked over 40 in a single week, which is a clear violation of the federal Fair Labor Standards.
Result: Walmart agreed to settle the lawsuit for $4.83 million. On top of back wages and damages, the retailer was hit with $463,815 in civil penalties for the repeated nature of the violations.
- Share on
Free Training & Resources
White Papers
Provided by Anaplan
Webinars
Provided by Yooz
Further Reading
Which Fair Labor Standards Act (FLSA) provision cost employers the most in back wages, according to the latest stats? If you guessed ove...
The Department of Labor (DOL) has finalized a technical amendment restoring the 2019 overtime salary threshold to the Code of Federal Regul...
IRS announced new per diem rates for business travel, effective October 1, 2024. Employers can use these rates through September 30, 2025. ...
State legislators and public interest citizen groups are pushing harder for minimum wage (MW) increases for next year and beyond. Recent ev...
Year-end may seem a long way off, but some changes related to Form W-2 may require your attention now. For example, the Social Security...
A missed federal payroll tax deposit can trigger hefty penalties — they just went up on July 1. But a new IRS program could provid...
