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Disney will pay $3.8 million in back wages

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Disney resorts
Settlement   The Disney resorts were very cooperative

The U.S. Labor Department and The Walt Disney Co. have reached an agreement that will provide $3.8 million in back wages to theme park and timeshare workers.

Under the agreement, back wages will be paid to 16,339 employees of the Disney Vacation Club Management Corp. and the Walt Disney Parks and Resorts U.S. Inc., both in Florida.

Disney resorts in Florida deducted a uniform or “costume” expense that caused some employees’ hourly rates to fall below the federal minimum wage, the department said.

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, according to the Department of Labor.

Additionally, the resorts failed to maintain required time and payroll records.

“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, in a press release.

“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.”

White said “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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