BURBANK (dpa-AFX) - The U.S. Department of Labor and The Walt Disney Co. reached an agreement that will make the theme park owner pay $3.8 million in back wages to ensure compliance with the Fair Labor Standards Act.
Disney will pay 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.
The department said 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.
'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.'
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