State, Wal-Mart sign deal on claims

OLYMPIAN STAFF, NEWS SERVICES

OLYMPIA -- Wal-Mart Stores must relinquish control of its workers' compensation claims handling for at least the next eight years under a settlement reached with Washington state.

The state Department of Labor and Industries said Thursday it will allow the Bentonville, Ark.-based retailer to remain self-insured for work place injuries, but it will be barred from administering its own claims.

Wal-Mart spokesman Bill Wertz said the company is happy with the outcome.

"The settlement preserves our self-insured status, which was the key point for us," Wertz said.

The state-run workers' compensation system moved to revoke Wal-Mart's authority to handle its own claims in 2000 after five audits between 1993 and 1999 showed the company failed to properly handle legitimate claims.

The settlement requires that Wal-Mart process claims more quickly than is required of the state's other large companies. The company will not be eligible to apply for self-administration of its program until 2010.

Wal-Mart approached the department for a deal after failing to win a court challenge last year, said Robert Nelson, agency spokesman.

Distribution center

The retailer was seeking the settlement as part of its decision to build an 870,000 square-foot regional food distribution center in Washington, he said. The warehouse will employ about 700 people, with an annual payroll of $18 million. A building site hasn't been determined.

Dennis Matson, executive director of the Thurston County Economic Development Council, said the county did not vie for the food distribution center.

The EDC was involved in negotiations that resulted in Target and Home Depot choosing to build two import distribution centers in Hawks Prairie. Wal-Mart also plans to build two stores in the Lacey area.

On the Web

Department of Labor and Industries: www.lni.wa.gov

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