• 03
  • June
    2010

Wal-Mart officials claim that they haven't broken any laws, but these protestations haven't stopped one of the world's largest companies from paying out upwards of $86 million to settle a wage claims lawsuit alleging unpaid wages, holiday and overtime.

More than 200,000 former employees took part in the class-action lawsuit, which first started in an Oakland court in 2006. While the California payout was a massive, it pales in comparison to a 2008 settlement in which Wal-Mart paid more than $600 million to settle a large number of class-action lawsuits brought across the United States.

Under California law, employees are required to pay all outstanding wages:

  • immediately if the employee is fired
  • within 72 hours if the employee resigns

Plaintiffs in the lawsuit accused Wal-Mart of either completely failing to pay holiday, overtime and other wages or failing to pay them within the required timeframe. Failure to pay on time can cost employers big time, sometimes up to 30 additional days worth of wages.

Wal-Mart has a long history of criticism in regards to employee treatment and wage/benefit distribution. While lawyers working on the class-action suit touted the case as a major victory for mistreated employees, it seems unlikely that it will be Wal-Mart's last time before a court.

For California employees, it is important to hold ex-employers accountable for unpaid wages and any other outstanding compensation. California law is very clear in its stance on employer obligations and it is important that they fulfill them.

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