Probing Child Labor at Wal-Mart

Calling a federal settlement with Wal-Mart Stores Inc. a sweetheart deal, Connecticut Atty. Gen. Richard Blumenthal said Wednesday that he would ask other states to join in investigating allegations that the world’s largest retailer broke child labor laws.

Wal-Mart agreed to pay $135,540 to settle federal child-labor charges, the Labor Department said last weekend. The 24 violations, which occurred at stores in Arkansas, Connecticut and New Hampshire, involved 85 teenage workers who used hazardous equipment such as a chain saw, paper balers and fork lifts. Child labor laws prohibit anyone under 18 from operating hazardous equipment.

Critics have labeled the settlement paltry, and lambasted a provision requiring labor officials to give Wal-Mart 15 days notice before starting any investigation of alleged violations of wage and hour laws.

Wal-Mart denied the allegations but agreed to pay the penalty.

“For Wal-Mart, this amount of money is less than a pittance,” Blumenthal said. “But the nature of the violations is extraordinarily severe and serious.... The federal settlement has all the markings of a sweetheart deal.”

Blumenthal said providing Wal-Mart with advanced notice of future investigations “enables changes in practices and even destruction of evidence.”

Blumenthal said he planned to contact officials in the other states by the end of the week to see whether they want to join his investigation.

Labor Department officials defended the settlement, saying it was similar to other settlements and that Wal-Mart was fined at a higher amount per violation than other retailers. The settlement also provides for training on child labor law compliance, officials said.

Gus Whitcomb, a spokesman for Wal-Mart, also called the agreement standard and said it would strengthen compliance.