$3.8 Million in Back Wages to be Paid by Disney Subsidiaries for FLSA Violations

 
Monday, March 20, 2017
 
The U.S. Department of Labor and two subsidiaries of The Walt Disney Co. have reached an agreement that will provide $3.8 million in back wages to ensure compliance with the Fair Labor Standards Act.

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. The department’s Wage and Hour Division found violations of minimum wage, overtime and recordkeeping provisions of FLSA.

Disney resorts in Florida deducted a uniform or “costume” expense that caused some employees’ hourly rates to fall below the federal minimum wage, the division 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. Additionally, the resorts failed to maintain required time and payroll records.

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