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January 20, 2006
Wal-Mart's Controversial Deal with Labor Department Expires

The Department of Labor let expire a controversial agreement to give Wal-Mart 15 days' notice before an investigation, according to U.S. Representative Rosa DeLauro and U.S. Representative George Miller.

In November 2005, the inspector general of the Department of Labor released a report criticizing the agreement between the company and the department's Wage and Hour Division (WHD).

The WHD and Wal-Mart entered the agreement to settle allegations that Wal-Mart violated child-labor law by allowing young workers in New Hampshire, Connecticut, and Arkansas to operate hazardous equipment.

The agreement called for the WHD to notify Wal-Mart 15 days prior to investigations and gave Wal-Mart the ability to avoid fines under certain conditions.

The inspector general concluded that while the agreement broke no law or regulation, "the provision in the Wal-Mart agreement requiring WHD to notify Wal-Mart 15 days prior to any WHD audit or investigation is inconsistent with WHD policy."

Critics of the agreement welcomed its expiration.

DeLauro, a Democrat from Connecticut, says the deal gave the retail giant "an unfair advantage and put its interests ahead of workers."

Miller (D-CA), who asked the inspector general to review the deal, agrees.

"Because of the public scrutiny and controversy surrounding this agreement, the Bush Administration had no choice but to let it expire last week" Miller says. "That's welcome news for Wal-Mart workers, who never should have had to put up with this in the first place."

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