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Page last updated at 22:30 GMT, Tuesday, 23 December 2008

Wal-Mart settles labour lawsuits

Wal-Mart store
Wal-Mart employs more than 1.4 million workers

The world's largest retailer, Wal-Mart, has said it will pay up to $640m (£427m) to settle 63 lawsuits which accuse it of breaking labour laws.

The cases brought against the US-based company allege that Wal-Mart workers were forced to work during breaks.

"Many of these lawsuits were filed years ago and the allegations are not representative of the company we are today," Wal-Mart said in a statement.

The retailer employs more than 1.4 million workers.

Our policy is to pay associates for every hour worked and to provide rest and meal breaks
Tom Mars, Wal-Mart general counsel

Wal-Mart has agreed to use electronic systems to ensure compliance with its wage and hour policies and law.

"Our policy is to pay associates for every hour worked and to provide rest and meal breaks," Wal-Mart general counsel Tom Mars said in a statement.

At the beginning of December, Wal-Mart agreed to pay up to $54.3m to settle a similar class-action, or group, lawsuit in Minnesota.

In 2005, a California court found that Wal-Mart broke a state law requiring employers to give staff an unpaid 30-minute lunch break if they worked more than six hours, and ordered the retailer to pay $172m.

In 2006, a jury in a Pennsylvania court also decided that Wal-Mart broke a state law and ordered it to pay at least $78m.

A year later, the retailer was told to pay an additional $62m in compensation to staff who worked for Wal-Mart in Pennsylvania between 1997 and 2006.

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