Monday, January 29, 2007

Overtime, wages and Wal-Mart

Maybe there is hope for Wal-Mart after all. The company has reported itself to the U.S. Labor Department for underpaying nearly 87,000 current and former employees a total of $33.5 million. Most likely the company has been getting worried about all of the negative press it has been getting and the grass roots movement to boycot its stores. Many of us will not shop at Wal-Mart until it cleans up its business practices.

Failure to pay overtime unfortunately is a widespread practice among businesses. Federal and state laws require employers to pay overtime compensation to non exempt employees who work over 40 hours per week. Non exempt employees are employees who do not have supervisory duties and generally work at the direction of a superior. Exempt employee are professionals, executives, administrators or outside salespeople.

Employees who feel they are entitled to overtime should investigate their rights and hold their employers accountable. Wal-Mart held itself accountable; maybe other employers who violate the overtime wage laws, will do the same.

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