Global retailer Walmart was charged with breaking local labour laws in late 2006. Walmart had been found guilty of exploiting employees in Pennsylvania, USA by forcing them to work during their rest breaks without pay. The courts fined Walmart $78 million. The following year, 1.6 million female workers also filed for discriminat ion charges, claiming that Walmart denied them opportunities for promotion due to t heir gender. They also claimed that Walmart paid male counterparts higher wages. In November 2013, employees staged a protest to demand higher pay, calling for a minimum annual salary of $25 000 for full-time workers. Walmart defended its practices stating that its average worker earns $12 per hour - significantly higher than the federal national minimum wage of $7.25 per hour.

 
(a) Define the terms discrimination and national minimum wage.

(b) Justify why firms such as Walmart need to be aware of the legal environment.