Compensation and benefits is a critical Human Resource function for Wal-Mart. Its compensation and benefits programs have gone up against criticism, because of the absence of an effective benefit and compensation plan. Wal-Mart has been accused of unlawfully driving hourly employees to work without pay, known as working “off the clock,” and neglecting to pay employees legally required overtime rates. According to Hatch, Hall, Kobata and Denis, “A Pennsylvania state court jury found that Wal-Mart had failed to pay employees for off-the-clock work. The jury found that Wal-Mart had violated state wage and rest break regulations by requiring the employees to work through their breaks while off the clock. The jury awarded the class of employees …show more content…
2004). Wal-Mart has been attacked for not paying living wage for quite some time. According to Andrew Thompson, “Walmart is known for low prices and low wages. These low wages are frequently criticized for inadequacy in supporting employees’ needs” (Thompson, 2017). “Wal-Mart managers are judged, in part, based on their ability to control payroll costs” (Tejada & McWilliams, 2003) Employees were illegally cheated out of hours, by moving the hours to the next week payroll or not add the hours at all, this in turn prevented the employees from obtaining overtime pay or paid for all hours worked. In the documentary, Wal-Mart: The High Cost of Low Price, Jon Lehman stated that his district manager explained to him, how to cheat workers out of overtime, by going into the system under a false user ID, and moving that time to another week (Greenwald, …show more content…
The end result of this is a cost to taxpayers of over a billion dollars annually” (Brussat, 2005). Not all employees are qualified for government assistance and some part-time employees may partially qualify government assistance. At the point when low wages cause Wal-Mart employees to be incapable of managing to pay for necessities of life, taxpayers are left holding the