The U.S. Labor Department and The Walt Disney Co. have reached an agreement that will provide $3.8 million in back wages to theme park and timeshare workers following what federal officials said were violations of minimum wage, overtime and recordkeeping rules.
The payouts will go to people who work at Disney Vacation Club Management Corp. and the Walt Disney Parks and Resorts - which include Florida's Disney World. They also did not keep proper records of required time and payroll, the department said.
Unpaid work before or after an employee's shift, uniform deductions that bring pay below the minimum wage, and incorrect record-keeping are all issues that arise fairly often in employment law enforcement, said Paul DeCamp, who ran the wage and hour division under President George W. Bush.
It is unclear when the department began its investigation into Disney's wage practices. Resort employees were also not compensated for duties carried out prior to the designated start time 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.
The Labor Department said Disney has been very cooperative throughout the investigative process and worked with the division to ensure employees will receive the pay they earned.