Even Disney is not immune from accountability for Fair Labor Standards Act (FLSA) violations.  The federal Department of Labor announced that two subsidiaries of The Walt Disney Co., the Disney Vacation Club Management Corp. and the Walt Disney Parks and Resorts U.S., Inc., have agreed to provide $3.8 million in back wages to ensure FLSA compliance.

 

Monies will be distributed to 16,339 workers at both Florida companies to compensate them for violations of minimum wage, overtime and recordkeeping provisions of wage and hour law.  These violations include the practice of deducting a uniform or "costume" expense that caused some employee's hourly rates to fall below minimum wage; failing to compensate employees for duties they completed prior to starting their shifts; and failing to maintain required time and payroll records.

 

"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, Florida.