17 December 2000

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Wal-Mart failed to pay benefits to injured workers, state government took over claims programme

The state of Washington is taking over Wal-Mart Stores Inc.'s workers' compensation programme because the company has delayed payments, underpaid wages and benefits and has more than 300 employees' workers' compensation claims outstanding.

Since 1994, the state of Washington has repeatedly given Wal-Mart warnings and fines concerning their handling of compensation claims. But now thirty-one thousand dollars and 66 violations later, the Washington State Department of Labor and Industries felt it had no other choice and has made an unprecedented decision to take over Wal-Mart Stores Inc. compensation claim in Washington.

``We've met with Wal-Mart staff many times. We've told them what they need to do. Despite our efforts, despite their promises, they've missed the mark,'' Gary Moore, director of the Washington State Department of Labor and Industries.

In 1998, Wal-Mart employees in Washington filed 772 claims. In 1999, over 100 more claims were filed. But the state agency said that Wal-Mart's poor record keeping made it impossible to say how many times injured workers had been unable to file claims, so the number remains unclear.

Wal-Mart's disregard for the law can also be found in other states where it operates Wal-Mart and Sam's Club.

  • The state of West Virginia moved Wal-Mart into the workers' compensation "adverse risk" pool, requiring a 15 percent hike in its premium rates, because of the company's poor safety record and its refusal to take steps to improve its safety.
  • A federal judge in Florida sanctioned Wal-Mart a total of $7,000 for repeated discovery violations, including altering a safety training video. The case was settled for a confidential sum shortly before the judge was to consider criminal contempt charges against Wal-Mart and its attorneys.
  • In Connecticut nearly 1,000 current and former employees of Wal-Mart and Sam's Club stores won $325,192 in back pay when Wal-Mart unlawfully refused to permit its employees on the night shift to leave the stores during their meal breaks.