Audit finds Wal-Mart violated labor laws

January 14, 2004|Associated Press

NEW YORK -- An audit by Wal-Mart Stores Inc. of about 25,000 employees uncovered thousands of labor violations, including minors working during school hours and workers not taking breaks or lunches.

The audit performed by Wal-Mart in July 2000 detailed 1,371 violations of child-labor laws, including minors working too late, working too many hours in a day, or working during school hours. On more than 60,000 occasions, workers missed breaks, and on 16,000 they skipped meal times, in violation of most state labor regulations.

In a statement, Wal-Mart said the audit was not a valid study and should not be taken at face value. The document was distributed to top Wal-Mart executives and has emerged in lawsuits against the company.

The audit, obtained by The New York Times, covered employee records at 128 Wal-Mart stores nationwide. The Bentonville, Ark.-based company has 1.2 million domestic employees.

James Finberg, an attorney who represents Wal-Mart employees seeking class action in New York and Washington state on grounds the company didn't pay for all hours worked, said the audit shows Wal-Mart broke its own rules. "The policy book says the right things, but the pattern and practice is clear -- managers tell people to do the work, no matter how long it takes, and they tell them they're not going to pay them overtime," Finberg said.

The company said its auditor looked at numbers alone and did not examine employees' circumstances.Labor lawsuits against the world's largest retailer are pending in 40 states, with class action granted in California, Indiana, Massachusetts, and Minnesota.

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