Walmart wage and hour settlements have totaled more than $1.6 billion over the past two decades, according to the corporate accountability database Violation Tracker, which records 53 wage and hour penalty entries against the company adding up to roughly $1.65 billion.1Good Jobs First – Violation Tracker. Walmart Parent Company Summary The single largest piece of that total is a 2008 deal worth up to $640 million that resolved 63 class-action lawsuits in 42 states.2The New York Times. Wal-Mart to Settle Suits Over Pay for $352 Million Beyond that headline deal, Walmart has faced large state judgments, newer settlements tied to pandemic screenings and wage statements, and at least one major reversal in its favor on appeal.
The 2008 Consolidated $640 Million Deal
Announced on December 23, 2008, the global settlement resolved what Walmart called the “vast majority” of wage and hour cases pending against it nationwide. The company faced 76 similar class actions at the time, and the deal consolidated 63 of them into a single federal proceeding, MDL No. 1735, administered in the U.S. District Court for the District of Nevada.3NBC News. Wal-Mart Settles Wage Lawsuits for Up to $640M4CourtListener. MDL 1735 In RE Wal-Mart Wage and Hour Employment Practices Litigation
The lawsuits shared a common claim: local store managers had allegedly pressured hourly workers to work off the clock, erased hours from timesheets, and denied legally required meal and rest breaks.5ABA Journal. Wal-Marts $640M Deal May Be Largest Wage Settlement Ever The payout range depended on how many eligible workers filed claims, with a guaranteed floor of $352 million and a ceiling of $640 million.2The New York Times. Wal-Mart to Settle Suits Over Pay for $352 Million
Large State Cases That Stayed Separate
Pennsylvania: $188 Million
Roughly 187,000 current and former Walmart employees in Pennsylvania won a $188 million judgment over missed meal and rest breaks and off-the-clock work between 1998 and 2006. The Pennsylvania Supreme Court upheld the award in January 2015.6Donahoo. Wal-Mart Ordered to Pay $188 Million in Employee Class Action Suit
Minnesota: $54.25 Million
About 100,000 Walmart and Sam’s Club workers in Minnesota settled their claims for $54.25 million in December 2008. The case covered alleged rest-break and wage law violations from September 1998 through November 2008, and the trial judge had previously found the company violated state law more than two million times.7The New York Times. Wal-Mart Settles Suits Over Workers Pay
California: Savaglio v. Wal-Mart
Filed in 2001 in Alameda County, Savaglio accused Walmart and Sam’s Club of a “systematic scheme to underpay” hourly workers in California by failing to record off-the-clock hours, altering time records, and denying meal and break periods.8University of Michigan Civil Rights Litigation Clearinghouse. Savaglio v. Wal-Mart Stores A jury returned a verdict including punitive damages, and in December 2006 the trial court denied Walmart’s motions for a new trial and for judgment notwithstanding the verdict.9University of Michigan Civil Rights Litigation Clearinghouse. Savaglio v. Wal-Mart Stores Order
California Cashier Seating: $65 Million
About 100,000 Walmart cashiers in California alleged the company violated a 2001 state wage order requiring employers to provide seats when the work permits it. Walmart agreed to a $65 million settlement in 2018 covering cashiers employed from June 2008 onward, and committed to a pilot program making stools available on request. The company denied wrongdoing.10NBC Bay Area. Walmart to Settle California Cashier Suit for $65 Million
More Recent Settlements
Evans v. Walmart: $35 Million for Wage Statements
In December 2022, Walmart finalized a $35 million settlement resolving claims that it failed to provide accurate written wage statements to California workers as required by California Labor Code Section 226. The class covered hourly associates at California retail locations from September 2016 through July 2021, with an estimated average payout of about $84.11Bloomberg Law. Walmart Workers $35 Million Wage Statement Deal Wins Final Nod12Evans v. Walmart Settlement Website. Frequently Asked Questions
COVID Pre-Shift Screening Cases
During the pandemic, hourly workers said Walmart required them to undergo mandatory pre-shift temperature checks and health questionnaires that took 10 to 15 minutes, without pay.
In Arizona, Arrison et al. v. Walmart settled for $2.5 million covering roughly 81,000 hourly workers employed between April 2020 and February 2022. A federal court approved the deal in July 2024, with plaintiffs’ attorneys estimating about $19 per worker after fees of 25 percent.13HR Dive. Walmart Settles Class Action Wage Claims Over Pre-Shift Covid Checks14Bloomberg Law. Walmart Workers Urge Approval of $2.5 Million Class Settlement A larger nationwide case, Haro et al. v. Walmart Inc., filed in the Eastern District of California on behalf of an estimated two million workers, received initial approval for a $5.2 million settlement in March 2024.15Bloomberg Law. Walmart Workers Seek Court Nod for Covid Screening Pay Suit Deal
Philadelphia Fair Workweek
Two Walmart employees filed a class action in July 2022 alleging the company violated Philadelphia’s Fair Workweek Law, which requires predictable scheduling for certain workers.16Community Legal Services of Philadelphia. Fair Workweek Walmart Washington v. Walmart Inc. resolved through a class settlement covering 572 class members and was dismissed with prejudice on March 26, 2025.17CourtListener. Washington v. Walmart Inc.
Department of Labor Back Wages
In 2007, the U.S. Department of Labor’s Wage and Hour Division recovered $33 million in back wages from Walmart, separate from the private class actions.1Good Jobs First – Violation Tracker. Walmart Parent Company Summary
A Case Walmart Won: The Magadia Reversal
Not every case ended in a payout. In May 2021, the Ninth Circuit reversed a $102 million judgment in Magadia v. Wal-Mart Associates, Inc., ruling in Walmart’s favor on all claims.18U.S. Court of Appeals for the Ninth Circuit. Magadia v. Wal-Mart Associates Inc. The original award included $96 million in statutory and Private Attorneys General Act penalties for alleged wage-statement violations plus $70,000 for meal-break claims. The appeals court found Walmart was not required to list hourly rates or hours worked for retroactive overtime adjustments tied to quarterly bonuses, because those adjustments related to prior pay periods. On the meal-break claim, the court held the plaintiff lacked standing to pursue PAGA penalties because he had not personally suffered a meal-break injury, a ruling with broad consequences for PAGA plaintiffs in federal court.
The Common Thread
Across geographies and decades, the allegations have been strikingly similar. Local managers, under pressure to control labor costs, allegedly told workers to clock out and keep working, edited timekeeping records, or scheduled shifts that made breaks impractical. The lawsuits have relied on a mix of the federal Fair Labor Standards Act and state wage and hour statutes, many of which provide stronger protections than federal law. California stands out: its Private Attorneys General Act has driven several of the largest recoveries, and the state’s cashier-seating wage order produced a case with no close federal analog.
The 2026 FTC Spark Drivers Deal
In February 2026, Walmart agreed to a $100 million settlement with the Federal Trade Commission and eleven states over allegations that it misrepresented earnings to drivers on its Spark delivery platform. The FTC said Walmart offered tips it knew drivers would not receive, reduced pay when orders were split or removed from batches, and failed to pass along the full amount of customer tips. Up to $79 million is designated for driver restitution, $11 million goes to the participating states, and $10 million is earmarked for consumer refunds. The settlement also requires Walmart to run an earnings verification program and submit annual compliance reports to the FTC for ten years.19Utah Department of Commerce. FTC and States Reach $100 Million Multistate Settlement With Walmart The FTC pursued the matter as a consumer protection case under the FTC Act rather than as a traditional wage and hour action, but the underlying claim, that workers were paid less than they were promised for the hours they put in, follows the same pattern that has defined Walmart’s wage litigation for two decades.