Editorial: Overtime allegations should be pursued

Friday, July 5, 2002 | 8:47 a.m.

In some of the worst scandals involving fraudulent accounting by businesses, companies hid billions of dollars in losses from their financial statements. So companies such as Enron and WorldCom looked like they were prospering when they actually were hemorrhaging. The federal government may reform the accounting practices of businesses, but it also should take a hard look at companies that may be taking other shortcuts that hurt workers.

The New York Times last week detailed allegations made in lawsuits by Wal-Mart employees, including here in Las Vegas, that sometimes they have been forced to work an extra hour off the clock before or after their regular shifts, a practice that could allow the company to get around paying overtime. The lawsuits contend that this scheme has resulted in the loss of hundreds of millions of dollars a year for Wal-Mart employees. This also would mean that Wal-Mart's profits would look better than they really are, especially if the company's competitors are paying their employees for time actually worked.

The U.S. Department of Labor should investigate these serious allegations. If the charges are true, the workers who made Wal-Mart the successful retailing giant it is today shouldn't be cheated out of their pay just to pad the company's bottom line.