Walmart agrees to pay $4.8 million in back wages
To settle an employee overtime dispute, Walmart has agreed to pay workers $4.8 million in back wages and damages, according to the U.S. Department of Labor (DOL). Following an investigation by the DOL's Wage and Hour Division, Walmart was found in violation of the Fair Labor Standards Act (FLSA) overtime provisions.
The investigation revealed the employer was not properly paying vision center managers and asset protection coordinators for all of their employee attendance. Rather, the company was misclassifying workers under exemptions for which they did not qualify to avoid paying them time-and-a-half rates for their overtime hours.
"Misclassification of employees as exempt from FLSA coverage is a costly problem with adverse consequences for employees and corporations," said Secretary of Labor Hilda Solis. "Let this be a signal to other companies that when violations are found, the Labor Department will take appropriate action to ensure that workers receive the wages they have earned."
According to the FSLA, employees must meet all of the provisions for executive, professional, administrative, outside sales or computer employees to qualify for an exemption. Employers can make sure their classifications are in line with federal labor laws by hiring experts or using an employee payroll service that will help them navigate the requirements.
The investigation revealed the employer was not properly paying vision center managers and asset protection coordinators for all of their employee attendance. Rather, the company was misclassifying workers under exemptions for which they did not qualify to avoid paying them time-and-a-half rates for their overtime hours.
"Misclassification of employees as exempt from FLSA coverage is a costly problem with adverse consequences for employees and corporations," said Secretary of Labor Hilda Solis. "Let this be a signal to other companies that when violations are found, the Labor Department will take appropriate action to ensure that workers receive the wages they have earned."
According to the FSLA, employees must meet all of the provisions for executive, professional, administrative, outside sales or computer employees to qualify for an exemption. Employers can make sure their classifications are in line with federal labor laws by hiring experts or using an employee payroll service that will help them navigate the requirements.
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