October 26, 2005

Wal Mart Memo: "Discourage Unhealthy Job Applicants"

An internal Wal-Mart memo suggests that the company "discourage unhealthy job applicants" in order to hold down insurance costs. The presence of the memo has been reported by CNN, the New York Times and in other news outlets.

From the New York Times:

In the memorandum, M. Susan Chambers, Wal-Mart's executive vice president for benefits, also recommends reducing 401(k) contributions and wooing younger, and presumably healthier, workers by offering education benefits. The memo voices concern that workers with seven years' seniority earn more than workers with one year's seniority, but are no more productive.

To discourage unhealthy job applicants, Ms. Chambers suggests that Wal-Mart arrange for "all jobs to include some physical activity (e.g., all cashiers do some cart-gathering)."

View the PDF of the memo at WalMartWatch.

A 10/28 New York Times editorial praises Wal-Mart's thinking.

Posted on October 26, 2005