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Wal-Mart seeks to settle illegal-worker allegations

By DAVID B. CARUSO
The Associated Press

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A federal grand jury has been meeting in Pennsylvania since December to investigate charges that the world's largest retailer knew that some of the janitorial companies it used to clean its floors employed illegal immigrants.

Federal agents arrested about 250 alleged illegal workers last October during a sweep of Wal-Mart stores in 21 states. Some immigrant workers have sued the Arkansas-based company, claiming they were paid illegally low wages.

Wal-Mart spokesman Gus Whitcomb declined to confirm that settlement talks are taking place, other than to say that the company was cooperating in the investigation. He said that cooperation included "talking with government on a regular basis."

Assistant U.S. Attorney Wayne Samuelson, who has been coordinating the grand jury probe, declined comment.

Lawyers close to the case, who spoke on the condition that they not be named, said the settlement negotiations included a possibility that the company could pay a multimillion dollar fine without having to acknowledge criminal liability.

The existence of the talks was reported Wednesday in The Wall Street Journal.

Whitcomb said the company maintains that it was unaware that any of its floor-cleaning contractors were violating labor or immigration laws.

Copyright © 2004 The Seattle Times Company

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