PHOTO: Disney Castle, Magic Kingdom, Florida. (photo via Flickr/Mohammed Bably)
The United States Department of Labor and The Walt Disney Co. reached an agreement last week to pay $3.8 million in back wages, ensuring compliance with the Fair Labor Standards Act.
As part of the agreement, Disney Vacation Club Management Corp. and Walt Disney Parks and Resorts U.S. Inc. will pay back wages to 16,339 employees as part of an investigation that found violations of minimum wage, overtime and record-keeping provisions.
The U.S. Department of Labor’s Wage and Hour Division found that a uniform or “costume” expense resulted in the hourly rates of some employees falling below the federal minimum wage.
Disney was also found to improperly maintain time and payroll records, as well as not compensating employees performing duties before or after their shifts.
“These violations are not uncommon and are found in other industries, as well. 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,” Wage and Hour Division district director Daniel White said in a statement.
“We hope the resolution of this case alerts other employers who may be paying employees in a similar manner, so that they too can correct their practices and operate in compliance with the law. The Disney resorts were very cooperative throughout the investigative process and worked with the division to ensure employees received the pay they earned.”
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The Labor Department’s Wage and Hour Division provides companies with the tools they need to understand and comply with the variety of labor laws the division enforces.
It also helps employees and small-business owners understand their rights and responsibilities.
For more information on the agreement between the Labor Department and Disney, check out the government agency’s official website.