An article in The Wall Street Journal reports that several executives of Wal-Mart Stores Inc. are suspected of knowingly hiring contractors who employed undocumented immigrants to work in their stores.  This information was uncovered after a civil lawsuit was filed by workers against Wal-Mart for back pay and damages.  The workers claim to have worked long hours without adequate compensation.  Documents were revealed as part of a pre-trial investigation, which imply that at least three Wal-Mart executives were aware of the contractor’s activity of hiring undocumented immigrants to work at low wages.  These documents include a search warrant and an affidavit from a federal immigration agent. 

If these claims are true, they challenge earlier statements made by Wal-Mart executives who claimed to be unaware of contractors hiring undocumented immigrants.  In March 2005, Wal-Mart paid $11 million in order to settle a federal investigation into the matter, stating that it should have imposed stronger regulations to guarantee that contractors weren’t hiring undocumented immigrants. The government agreed not to press criminal charges against the company.

James L. Lindsey, a lawyer involved in the case, believes that Wal-Mart executives have been working in league with the contractors in an attempt to hire undocumented immigrants and cover it up.  Wal-Mart has stated that “no company senior official” has been implicated through the current evidence. 

According to these documents, however, a Wal-Mart executive instructed a contractor to develop multiple companies, in the event that one company was discovered to be hiring undocumented immigrants and fired by Wal-Mart. Then the contractor could continue his business through those other companies.  Contractor Christopher Walter, owner of IMC Associates, makes these claims in an affidavit, and states that he complied for fear of losing his contracts.  Federal investigators working undercover with Mr. Walters attended a meeting with Wal-Mart executives in April of 2003.  Tape recordings from the meeting reveal that Walters told executives that he knew of undocumented immigrants working in Wal-Mart stores.  Steve Bertschy, a Wal-Mart vice-president, responded, “Don’t repeat that.” 

Wal-Mart executives could not be reached for comment in the Wall Street Journal article, but have said that both executives in question have retired.