Wal-Mart is set to pay $11m to the US government, following an investigation into the use of illegal immigrant labour.
The world’s largest retailer, which owns Asda in the UK, employed the workers as janitors and cleaners through sub-contractors to work in its store.
The issue came to light in an October 2003 probe at 60 Wal-Mart stores.
Wal-Mart said the US government would not pursue any criminal charges against the firm or any of its employees.
It said in a statement: “Today we are acknowledging that our compliance programme did not include all the procedures necessary to identify independent floor cleaning contractors who did not comply with federal immigration laws.”
In February the company reported a 16 per cent climb in quarterly profits, boosted by international sales and the expansion of its store network.