(Reuters) — Walmart Stores agreed to pay US$4.8 million in back wages and damages to thousands of employees for unpaid overtime after a probe by the United States Department of Labor found that the retailer had violated a federal law governing overtime pay.
Walmart will also pay $463,815 in civil fines.
According to the U.S. Labor Department, Walmart failed to pay overtime to certain employees, considering them to be exempt from overtime requirements, when they were in fact not exempt.
Walmart said it has already adjusted its pay practices, determining that back wages should be paid for 3,700 employees in two roles.
"When the issues resolved today were initially raised, we took them seriously and fully cooperated with the Department of Labor to make sure they were corrected in 2007," said Walmart spokesman Greg Rossiter.
He said the settlement involved employees serving in the roles of asset protection co-ordinator and vision center manager. About 1,700 employees in the former role are eligible for about US$290 on average in back pay, Rossiter said, while some 2,000 employees in the latter role are eligible for about US$2,300 on average.
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