The company denied any wrongdoing Wednesday in a San Francisco federal court filing, Reuters reported.
The 9-year-old case was expected to go to trial later this year.
The settlement still must be approved by a federal judge. The retailer also said it would provide seating for its California employees.
"Both sides are pleased to have reached a proposed resolution," Randy Hargrove, a Walmart spokesman, told Reuters.
Lawyers who represented the cashiers did not comment.
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