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Wal-Mart to settle U.S. child labor cases

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New York - The world's largest retailer, Wal-Mart Stores Inc., will pay $135,540 to settle charges it violated child labor laws in three states, The New York Times reported on Saturday.

Citing Labor Department officials, the newspaper said the settlement covered 24 violations mainly involving workers under the age of 18 operating dangerous machinery including cardboard balers and chain saws in Connecticut, Arkansas and New Hampshire.

The Bentonville, Arkansas-based company denied any wrongdoing in the January 6 settlement with the Labor Department.

One of the charges in the investigation that began in 2001 involved a youth who injured his thumb while using a chain saw to cut Christmas trees, the Times reported.

According to the newspaper, Wal-Mart agreed in the settlement not to employee any worker under the age of 14 and will not allow any worker under age 18 to operate cardboard balers.

The retailer also agreed to train new store managers about child labor law compliance and offer more training to current managers.

"We worked with the Department of Labor to strengthen our training and compliance programs," Wal-Mart spokesman Gus Whitcomb told the Times.

Labor Department officials were waiting for Wal-Mart to pay the amount before making the settlement public, the Times reported.

A provision in the agreement between the Labor Department and Wal-Mart gives Wal-Mart 15 days' notice before the department can investigate other accusations such as failure to pay minimum wage or overtime, said the newspaper.

The Times said some department officials suggested the notice provision might give the retail giant a chance to conceal violations.

Wal-Mart has faced previous child labor charges including a fine of $205,650 for child labor law violations in 20 stores in Maine in 2000.

A 2004 internal audit of 128 stores found 1,371 instances where minors worked too long, too late or during school hours - an audit Wal-Mart later said was faulty, the Times reported.