Do you think compensation law violations are more common in retailing or manufacturing? Explain your answer.

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Wal-Mart, the largest retailer in the U.S. with 1.4 million workers in 1500 stores, has faced numerous lawsuits for violating FLSA and state compensation legal regulations. Some examples would include: a Colorado case that was settled for $50 million, and Wal-Mart is appealing $172 million awarded in California. An example of some of the alleged violations is illustrated in a Pennsylvania case involving 187,000 workers who were denied meal breaks and were working unpaid hours over breaks and before clocking in. A federal case found that Wal-Mart violated child labor laws in a number of states by having teenage workers operate hazardous equipment such as forklifts. To prevent and reduce such compensation law violations, Wal-Mart implemented training of managers. Also, specific systems have been established to improve compliance with the various regulations on non-exempt employees regarding unpaid hours worked, required breaks, child labor compliance, and other provisions.
Questions for Discussion:
Do you think these lawsuits have any influence on Wal-Mart’s recruitment or retention? Explain.
Other than management training, can you think of other ways that Wal-Mart can prevent or reduce compensation law violations? Explain.
Do you think compensation law violations are more common in retailing or manufacturing? Explain your answer.

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