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Wal-Mart Agrees to Settle Wage Claim for $86 Million

On May 11, 2010 Wal-Mart agreed to pay thousands of its former California employees a variety of unpaid wages. California law dictates that all outstanding wages must be paid within 72 hours of when an employee resigns. The plaintiffs are seeking pay for unused vacation time, personal time, and other wages. The settlement includes approximately $12 million in unpaid vacation, and $74 million in potential penalties and interest on the unpaid earnings. Several class actions were filed in the spring of 2006 alleging Wal-Mart violated the law by failing to pay overtime wages and failing to provide employees with their final checks upon leaving Wal-Mart as quickly as is required under California law. These lawsuits were consolidated in the Northern District of California. The plaintiffs claim that there are approximately 145,000 former employees who fall under this time frame and who were owed unpaid wages.


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