Wal-Mart to Pay $4.8 Million for Unpaid Overtime

Wal-Mart Stores Inc., headquartered in Bentonville, Ark., has agreed to pay $4.8 million in back wages and damages to more than 4,500 employees nationwide for violations of the Fair Labor Standards Act’s (FLSA) overtime provisions. Wal- Mart misclassified its vision center managers and asset protection coordinators at Wal-Mart Discount Stores, Wal-Mart Supercenters, Neighborhood Markets and Sam’s Club warehouses as exempt employees from the FLSA’s overtime requirement. The U.S. Department of Labor’s (DOL) Wage and Hour Division found that the employees were nonexempt and therefore due overtime pay for any hours worked beyond 40 per week.

The FLSA provides an exemption from both minimum wage and overtime pay requirements for individuals employed in bona fide executive, administrative, professional and outside sales positions, as well as certain computer employees. To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week. Nonexempt employees must be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Misclassification of employees as exempt from FLSA coverage is a common and costly problem for employers. To avoid a DOL investigation or overtime lawsuit, contact Kaye Law Offices, P.A. to determine whether you have properly classified your employees as exempt or nonexempt.