Disney has agreed to pay $3.8 million in back wages to thousands of Florida employees after the U.S. Labor Department’s Wage and Hour Division found that the company did not compensate them for duties before and after shifts. In addition officials found that Disney had inappropriately deducted a uniform or “costume” expense that drove pay below the minimum wage.
The agency also found that Disney didn’t maintain required time and payroll records.
The action affected 16,339 workers at Disney Vacation Club Management and Walt Disney Parks and Resorts.
“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 Wage and Hour Division in Jacksonville.
He added that such violations “are not uncommon” and that Disney resorts “were very cooperative throughout the investigative process and worked with the division to ensure employees received the pay they earned.”