The United States Department of Labor went after the Walt Disney Company for not complying with the the Fair Labor Standards Act. They reached a deal requiring Disney to pay $3.8 million in back wages to 16,339 employees.
The case found violations having to do with minimum wage, overtime, and record-keeping. One of the issues was with a “costume expense” that made wages fall below the minimum wage according to federal law.
Wage and Hour Division district director Daniel White pointed out that this isn’t uncommon.
“These violations are not uncommon and are found in other industries, as well. 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. The Disney resorts were very cooperative throughout the investigative process and worked with the division to ensure employees received the pay they earned.”