Disney to pay out US$3.8m to employees following wage dispute
by Tom Anstey | 20 Mar 2017
Disney resorts in Florida deducted a uniform or “costume” expense that caused some employees’ hourly rates to fall below the federal minimum wage / Phelan M. Ebenhack/AP/Press Association Images
Disney has agreed to pay out US$3.8m (€3.5m, £3m) in back wages, after officials found violations from the company regarding minimum wages, overtime pay and payroll records.
The two Florida subsidiaries of Disney – Disney Vacation Club Management and Walt Disney Parks and Resorts – will pay back wages to 16,339 employees, with the operator promising to “adjust our procedures in order to avoid this in the future” to ensure compliance with the Fair Labor Standards Act (FLSA).
“The department’s Wage and Hour Division found violations of minimum wage, overtime and recordkeeping provisions of FLSA.” said a statement from the US Department of Labor.
“Disney resorts in Florida deducted a uniform or ‘costume’ expense that caused some employees’ hourly rates to fall below the federal minimum wage. The resorts also did not compensate employees performing duties during a pre-shift period before the designated start of their shifts, and during a post-shift period. Additionally, the resorts failed to maintain required time and payroll records.”
Under the terms of the agreement, Disney must make the back wage payments on or before 31 July 2017. Proof of payments must also be provided to the Department of Labor by 31 August of this year. The company will also provide its managers and supervisors at its Florida hotels with training on compensable work time and how to record such hours.
“The Disney resorts were very cooperative throughout the investigative process and worked with the division to ensure employees received the pay they earned,” added Daniel White, district director for the Wage and Hour Division in Jacksonville, Florida.
“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.”
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Disney has agreed to pay out US$3.8m (€3.5m, £3m) in back wages, after officials found violations from the company regarding minimum wages, overtime pay and payroll records. The two Florida subsidiaries of Disney – Disney Vacation Club Management and Walt Disney Parks and Resorts – will pay back wages to 16,339 employees, with the operator promising to “adjust our procedures in order to avoid this in the future” to ensure
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