ORLANDO (CBSMiami) — Walt Disney Co. will pay up to the tune of $3.8 million in back wages to Florida employees, U.S. Labor Department officials said Friday.
In the agreement, the company will pay 16,339 employees with the Disney Vacation Club Management Corp. and the Walt Disney Parks and Resorts U.S. Inc.- both in Florida.
The agreement was reached after the Wage and Hour division of the Labor Department found multiple violations for minimum wage, overtime, and keeping proper records.
According to the department, Disney resorts in Florida would deduct a uniform or “costume” expense which caused some employees’ hourly rates to fall below the federal minimum wage.
The company would also not compensate employees for performing work before and after their shifts, the department said. They also did not keep proper records of required time and payroll, the department said.
“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. “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. 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 department said Disney resorts were “very cooperative” throughout the investigation.