Wal-Mart settles Minnesota W&H lawsuit for $54 million — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Wal-Mart settles Minnesota W&H lawsuit for $54 million

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Wal-Mart agreed Dec. 9 to pay $54.25 million to settle a seven-year class-action lawsuit with roughly 100,000 current and former hourly employees in Minnesota. All things considered, that was a bargain.

A Dakota County judge ruled in July that the company had committed 2 million labor law violations by allowing workers to skip allotted breaks and work off the clock. At $1,000 per violation, the company faced potential fines of $2 billion, making the settlement an attractive alternative.

Several weeks later, Wal-Mart announced it would pay between $352 million and $640 million to settle 63 wage-and-hour lawsuits pending against it throughout the country.

Some retail analysts believe the Bentonville, Ark.-based company rushed to settle the cases before the Obama administration came in.

“Wal-Mart typically fights lawsuits to the end more than any major corporation in America,” Burt Flickinger III of Strategic Resource Group told The Associated Press. He speculated the company is “trying to do what it can to present a newer face to the new administration.”

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