Labor Laws

Labor Laws

Case:

Walmart, Labor Ready Midwest, and QPS Employment Group are named defendants in a class action suit alleging that Walmart violated state and federal laws by denying their employees mandated overtime pay. The employees were paid less than minimum wage for hours they have worked. The 20 plaintiffs involved in this case worked for the two staffing agencies and were sent to Walmart stores for temporary employment on several occasions. The employees state that Walmart failed to keep records of time worked, which made it difficult for the employees to prove they were not being paid. Walmart and the two agencies were also alleged of failing to pay minimum amount of wage required to the employees who were told to come into work and then sent home because they were not needed for the day.

Analysis:

Walmart, Labor Ready Midwest, and QPS Employment Group owed a duty of service to the temporary employees working at the Walmart stores to record properly hours worked. Specifically, Walmart as the world’s largest employer owed a duty of care to its employees, temporary or not, to abide by the laws set forth in the Fair Labor Standards Act. Walmart is a company that has an annual volume of over $500,000 in business and engages in interstate commerce and for this reason required to follow the laws set forth in the Fair Labor Standards Act. The parts of the act that apply in this case require the employees to be compensated for their time at no less than the minimum wage of $7.25 per hour. In addition employee compensation for hours exceeding 40 in a week must be at one and a half times his or her normal pay rate. Walmart not ensuring that employees were properly compensated is why the company is at fault in this case.


Rules:

➢ An employee is required to receive minimum wage, denying workers this requirement is a violation of federal and state laws.

➢ If an employee works 40 hours Monday thru Friday, and is mandatory to work Saturday. He or...

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