Feb. 14, 2005 – In a deal critics say grants the world’s largest retailer special treatment, Wal-Mart Stores will pay $135,540 to settle charges of 24 child labor law violations in which minors used dangerous machinery, including chain saws, forklifts, and cardboard balers.
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As part of its agreement with the federal government over violations in Arkansas, Connecticut and New Hampshire, Wal-Mart will admit no wrongdoing. The settlement also gives Wal-Mart a15-day advance notice before the Labor Department conducts future "wage and hour" investigations.
Though the agreement was signed at the beginning of January, the settlement was not revealed publicly until last Friday after a New York Times reporter probed Labor Department officials about complaints from department employees.
Federal officials say they were waiting for Wal-Mart to pay the $135,540 fine before announcing the settlement to the public.
John R. Fraser, the Labor Department’s top wage official under former Presidents George H.W. Bush and Bill Clinton, says the 15 days' notice is extremely unusual. "The language appears to go beyond child labor allegations and cover all wage and hour allegations," Fraser told the Times. "It appears to put Wal-Mart in a privileged position that to my knowledge no other employer has."
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Wal-Mart has a history of child labor violations. An internal audit conducted in January 2004, found 1,371 child labor violations in 128 stores. The state of Maine found violations in all of its 20 stores in March 2000, and fined the company $205,650.
