Payment will be received by more than 16,000 workers at the company’s resorts, parks and Vacation Club division after the Department of Labor found that uniform and “costume” expenses were deducted from their pay, taking it below minimum wage. Employees were also not paid for pre- and post-shift duties, and the company was found to have failed to keep sufficient payroll records.
Walt Disney Co. has settled a complaint brought by the U.S. Department of Labor (DOL) for violations relating to minimum-wage laws, TravelMole.com reported.
Through the settlement, Disney will pay $3.8 million to more than 16,000 workers, TravelMole.com reported.
The Department of Labor found that Disney deducted a uniform or “costume” expense out of workers’ pay, taking it below minimum wage. Employees were also not paid for duties carried out pre- and post-shift, and the company failed to keep sufficient payroll records, TravelMole.com reported.
“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,” said Daniel White, District Director for the DOL’s Jacksonville (Fla.) Wage and Hour Division, in announcing the settlement.
“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.”
Payouts will be received by workers at Disney resorts, parks and its Vacation Club division, TravelMole.com reported.
In a statement, the Disney Co. said that it would “be providing a one-time payment to resolve [the situation],” and that it would be “adjusting our procedures to avoid this in the future.”
Under the terms of the settlement, TravelMole.com reported, Disney is also required to train managers in what constitutes “compensatable work time.”