Wal-Mart Settles Illegal Immigrant Case for $11 Million
Sunday, March 20, 2005 at 10:00AM
TheSpook
Undocumented Workers Worked 7 days a Week - No Overtime or Injury Compensation
Wal-Mart Stores Inc. (WMT), the world's
largest retailer, has agreed to pay $11 million to settle federal
allegations it used hundreds of illegal immigrants to clean its stores,
authorities said Friday. Additionally, 12 businesses that provided
contract janitor services to Wal-Mart will pay $4 million in fines and
plead guilty to criminal immigration charges, officials said. The case
against Wal-Mart marks a record dollar amount for a civil immigration
settlement, said Homeland Security Assistant Secretary Michael J.
Garcia, director of Immigration and Customs Enforcement. It also
"requires Wal-Mart to create an internal program to ensure future
compliance with immigration laws by Wal-Mart contractors and by
Wal-Mart itself," Garcia said Friday in announcing the settlement.
Wal-Mart spokeswoman Mona Williams told The Associated Press the
company is "ready to put it behind us and move forward." Though
Wal-Mart does not face criminal charges, "we acknowledge that we should
have had better safeguards in place to ensure our contractors were
hiring only legal workers," Williams said. Wal-Mart shares fell 21
cents to $52.12 in afternoon trading on the New York Stock Exchange.
They have traded in a range of $50.86 and $60.45 over the past 52
weeks. In two separate investigations, authorities uncovered the cases
of an estimated 345 illegal immigrants contracted as janitors at
Wal-Mart stores. Many of the workers worked seven days or nights a week
without overtime pay or injury compensation, attorneys said. Those who
worked nights were often locked in the store until the morning.
Wal-Mart Stores, based in Bentonville, Ark., had sales last year of
$288.19 billion. [more]
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