Scrooge McDuck: Disney Violated Minimum Wage Rules
The U.S. Department of Labor has ruled that Disney resorts in Florida deducted a uniform or "costume" expense that caused some employees' hourly rates to fall below the federal minimum wage.
As a result, 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 DOL also said 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.
The back wages will go 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."