$86 Million Walmart Settlement in Wage Lawsuit

By Jason Beahm on May 17, 2010 | Last updated on March 21, 2019

Walmart stores will pay up to $86 million to settle a massive wage and hour labor lawsuit. The Walmart settlement to the class-action lawsuit comes after the world's largest retailer was sued for failing to make full payment for vacation, overtime and other wages to California employees. The class was made up of around 232,000 people who will share the settlement.  

The case, In re: Wal-Mart Stores Inc. Wage and Hour Litigation, was originally filed in the U.S. District Court in the Northern District of California. This case is separate from Walmart's 2008 payment of $640 million to settle 63 federal and state class-action lawsuits which also alleged various wage and hour labor violations. 

This Walmart settlement will total between $43 million and $86 million, plus the costs associated with calculating the wages. The settlement total will represent between one and two days of net profit for Walmart. The Walmart settlement includes $12 million in vacation pay and $74 million in unpaid wages to terminated workers. Walmart does not concede that any wages remained unpaid, according to Tuesday's filing.

Walmart also agreed to pay $40 million to settle a Massachusetts class-action wage and hour labor lawsuit. 

Though Walmart has agreed to the settlement, the company does not agree with the plaintiff's argument that wages were not paid. Walmart spokesman, Greg Rossiter, declined to comment on the settlement.

The case comes from two lawsuits against the retailer filed in federal court in Northern California and consolidated four years ago. A judge must still sign off on the settlement.

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