The world’s largest retailer, Wal-Mart Stores Inc., settled the biggest wage-and-hour class-action lawsuit in the history of Massachusetts.  Wal-Mart has agreed to pay $40 million to nearly 87,500 former and current Wal-Mart employees across the state.

The class-action lawsuit against Wal-Mart, originally filed in 2001, claimed the retail giant did not allow workers to have rest and meal breaks, refused to pay overtime wages, and even manipulated employees’ time cards to lower employees’ pay.

According to the massive settlement, all employees who worked for Massachusetts Wal-Mart locations between August 1995 and the settlement date will be paid anywhere between $400 and $2,500.  Payment will be determined by how many years an employee worked there.  The average employee will receive around $734.

Previously, in September of this year, Wal-Mart paid $3 million to settle an investigation of violations of state meal-break policies.  The state attorney general launched an investigation after reports of workers being required to work through meal breaks were forced to cut breaks short or only being allowed to take breaks after working 6 or more hours.

This newsletter is a publication of Nochumson P.C. and is intended for general information only. It should not be construed as legal advice with respect to any particular situation, and readers should not act upon information contained in this newsletter without first consulting an attorney. Copyright © 2009.