The Walt Disney Co. will provide $3.8 million in back pay to
16,339 employees for violating minimum wage, overtime and record-keeping laws,
the U.S. Department of Labor (DOL) reported on Friday.
According to the DOL, Disney resorts in Florida deducted a
uniform or "costume" expense that caused some employees' hourly rates
to fall below the federal minimum wage. Resort employees were also not
compensated for duties carried out prior to the designated start time of their
shifts, and during a post-shift period. Additionally, the resorts failed to
maintain required payroll records.
Thus, Disney reached an agreement with the DOL to pay $3.8
million in back wages to employees of the Florida-based Disney Vacation Club
Management Corp., and Walt Disney Parks and Resorts to ensure compliance with
the Fair Labor Standards Act.
"These violations are not uncommon and are found in
other industries, as well," said Daniel White, district director for the
Wage and Hour Division in Jacksonville, Fla. "Employers cannot make
deductions that take workers below the minimum wage and must accurately track
and pay for all the hours their employees work, including any time they work
before or after their scheduled shifts."