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February 15, 2005

DOL Finally Admits Wal-Mart Deal Exists

But censors the gory details

Here's the press release issued by the Department of Labor. It highlights the fine paid by Wal-Mart and it's agreement to comply with the law, but fails to even mention the deal to prohibit DOL investigations until Wal-Mart corporate headquarters is given a heads up to whitewash their operations.

And this was actually the second press release issued. The first was quickly recalled, because its first paragraph read:

The U.S. Department of Labor has fined Wal-Mart $135,540 in civil money penalties for violating the youth employment provisions of the Fair Labor Standards Act (FLSA). The department's Wage and Hour Division found that Wal-Mart allowed teenage workers to operate hazardous equipment resulting in one teenager being injured while operating a chain saw.
Watch that last phrase, since in the replacement press release, all that is said is:
The U.S. Department of Labor has fined Wal-Mart $135,540 in
civil money penalties for violating the youth employment provisions of the
Fair Labor Standards Act (FLSA) for allowing teenage workers to operate
hazardous equipment.
No mention of teenagers being injured by chainsaws. You might wonder about the change, but apparently there is a provision in the agreement with Wal-Mart that they had joint control over how the agreement would be described to the public.

So not only did Wal-Mart get a slap on the wrist and a secret deal to help them avoid prosecution for future violations, Wal-Mart got creative control of the DOL press operations. Unbelievable!

Whole original press release after the jump

THE FIRST DOL PRESS RELEASE (RECALLED):

U.S. Department of Labor For Immediate Release
Office of Public Affairs Date: February 14, 2005
Washington, D.C. Contact: Dolline Hatchett & Pamela Groover
Release Number 05-272-NAT Phone: 202-693-4650 or 202-693-4676
Wal-Mart Agrees to Pay Fine for Violating Child Labor Laws

Company Also Signs Compliance Agreement with Labor Department

WASHINGTON-The U.S. Department of Labor has fined Wal-Mart $135,540 in civil money penalties for violating the youth employment provisions of the Fair Labor Standards Act (FLSA). The department's Wage and Hour Division found that Wal-Mart allowed teenage workers to operate hazardous equipment resulting in one teenager being injured while operating a chain saw.

Wal-Mart, the world's largest retailer with approximately 3,000 stores, is headquartered in Bentonville, Arkansas. The Wage and Hour Division Southwest Region has jurisdiction over Wal-Mart headquarters and coordinated the resolution of several investigations of stores in Connecticut, Arkansas, and New Hampshire.

The department's investigation revealed that Wal-Mart employed 85 minors aged 16 and 17 who performed prohibited activities, including loading and occasionally operating or unloading scrap paper balers, and operating fork lifts.

The FLSA prohibits the employment of minors under age 18 in any occupation determined hazardous by the Department of Labor. The department has issued 17 specific hazardous occupation orders identifying these prohibited occupations.

While not admitting the violations, Wal-Mart cooperated with the department and guaranteed full compliance with the youth employment provisions of the FLSA in the future.

"A young person's early work experience should be positive and educational and should never jeopardize their health and well-being," said Victoria Lipnic, assistant secretary for the department's Employment Standards Administration. "Wal-Mart has signed an agreement with the department and committed to take specific measures to ensure that all its stores are in compliance with youth employment laws in the future."

As part of the compliance agreement, Wal-Mart will:

* designate a corporate official to supervise compliance with the agreement;
* provide new and current store managers with training on child labor law compliance;
* include child labor compliance reviews in its regular internal audits, and
* post warning signs, supplied by the Labor Department, on all company-owned hazardous equipment indicating the age restriction on their use.

This compliance agreement is significant because Wal-Mart has agreed to implement these practices in all of its Wal-Mart Stores and Supercenters.

For more information on the youth employment provisions of the FLSA, visit the department's YouthRules! Web site at www.youthrules.dol.gov. Additional information can also be obtained by calling the Department of Labor's toll-free help line at 1-866-4USWAGE.

Posted by Nathan at February 15, 2005 10:57 AM