Disney Reaches Agreement with DOL on Back Pay

Disney will provide $3.8 million in back wages to comply with the Fair Labor Standards Act.

The U.S. Department of Labor announced that two subsidiaries of The Walt Disney Co. have reached an agreement to provide $3.8 million in back wages to comply with the Fair Labor Standards Act. The agreement covers 16,339 employees of the Disney Vacation Management Corp. and the Walt Disney Parks and Resorts U.S. Inc.

DOL's Wage and Hour Division found violations of minimum wage, overtime, and recordkeeping provisions of the FLSA.

A uniform expense was deducted, causing hourly rates to fall below the federal minimum wage. The resorts, according to DOL, also did not compensate employees who performed 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. 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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