Walt Disney Co. has agreed to pay $3.8 million in back wages to 16,339 employees, including workers at its Florida theme parks whose hourly pay allegedly fell below the minimum wage when the company deducted the cost of uniforms and costumes.
The company also failed to compensate employees for duties performed before the designated start of their shifts and failed to maintain accurate payroll records, the U.S. Labor Department said Friday in announcing the agreement with the Disney Vacation Club Management Corp. and Walt Disney Parks and Resorts U.S. Inc., both in Florida.
"Employers cannot make deductions that take workers below the minimum wage and must accurately track and pay for all the hours their employees work," Daniel White, district director for the Labor Department's wage and hour division in Jacksonville, said in a written statement.
He said Disney was cooperative throughout the investigation. Efforts to reach a spokesman for the company were not immediately successful.
The agreement covers alleged violations between 2013 and 2017 and says that Disney is not admitting any violations occurred.
"This is a very large amount of money, but even more important because a large number of workers were involved," said Seth Harris, who served as acting secretary of labor under President Barack Obama. "This case is another illustration of the fact that wage and hour enforcement is just as critical today as it has ever been."
Disney has agreed to start within 30 days training all managers, supervisors, and non-exempt employees at all its Florida resort hotels "on what constitutes compensable work time and the need to accurately record all such time."
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.
"The wage and hour division and plaintiffs' lawyers look for these issues in any investigation that they're doing, and many employers have practices that are challengeable with respect to those issues," said DeCamp, now an attorney who represents employers. "And there is some measure of ambiguity in the law."
Disney, the world's largest entertainment company, reported $55.6 billion in revenue last year.
The Washington Post
Sat Mar 18 2017
Disney, the world's largest entertainment company, reported $55.6 billion in revenue last year.
'No one will win a trade war,' China says after Trump tariff threat
Donald Trump says he would impose the tariffs until China stops the flow of illegal drugs, particularly fentanyl, into the United States.
What has caused Pakistan's deadly clashes between police and supporters of Imran Khan?
Topping the demands of Khan's Pakistan Tehreek-e-Insaf (PTI) party is the release of all its leaders, including Khan, who has been jailed on a series of corruption charges since August 2023.
One woman or girl killed every 10 minutes by intimate partner or family member - UN
The report highlights that "60 per cent of all female homicides" are committed by "people closely related to them".
Sweden urges Chinese ship to return for undersea cable investigation
Two subsea cables, one linking Finland and Germany and the other connecting Sweden to Lithuania, were damaged in less than 24 hours.
[COLUMNIST] Building more highways won’t solve traffic congestion - reducing demand will
It is clear that adding more lanes and highways doesn't work, because we are still attempting the same approach to solve the issue.
Hyundai to invest RM2.16 bil in Malaysia through strategic partnership with INOKOM
This investment includes efforts to upgrade INOKOM's existing assembly capacity to meet Hyundai's automotive needs.
‘C4Cinta’ sets record as highest-grossing Malaysian Tamil film
'C4Cinta', directed by young filmmaker Karthik Shamalan, has set a new benchmark in Malaysian Tamil cinema.
Man charged with mother's murder, storing body in freezer
The court denied bail and scheduled case mention on Feb 7 for the submission of forensic, autopsy, and chemist reports.
Abolition of examination in schools to reduce pressure on pupils - Fadhlina
The classroom assessment approach offers a much more interesting learning ecosystem, says Fadhlina Sidek.
Google, Meta urge Australia to delay bill on social media ban for children
Google and Meta says the government should wait for the results of an age-verification trial before going ahead.
Judge tosses Trump 2020 election case after prosecutors' request
It represents a big legal victory for Donald Trump, who won the Nov. 5 US election and is set to return to office on Jan. 20.
DHL plane crash in Lithuania leaves authorities searching for answers
Rescue services said the plane hit the ground, split into pieces and slid over 100 metres (110 yards).
National squad to hold friendly matches for 2025 Indoor Hockey World Cup
The warm-up matches will involve matches against better ranked teams in the world, namely Austria (first) and Belgium (third).
G7 seeks unity on ICC arrest warrant for Netanyahu
The United States, part of the G7, has rejected the ICC decision, with President Joe Biden describing it as outrageous.
Francissca Peter remembers Tan Sri Ahmad Nawab: A tribute to a musical legend
A legend who has influenced our music for decades, was one of the highlights of my career, says Francissca Peter.
TikTok decision coming soon as Jan. 19 divestment deadline looms
Judges are reviewing TikTok's challenge to a law requiring ByteDance to sell its US assets by Jan. 19 or face a ban.
Lebanese sources: Biden, Macron set to announce Israel-Hezbollah truce
In Washington, White House national security spokesperson John Kirby said, "We're close" but "nothing is done until everything is done".
PM meets chaebol tycoon to attract more FDI to Malaysia
Chaebols are prominent figures from South Korea's family-owned conglomerates.
Govt won't allow non-citizen vehicles to enjoy RON95 subsidy - Economy Ministry
The implementation of the RON95 subsidy in 2025 is expected to provide savings of RM3.6 billion to government expenditure.
Ringgit opens lower as greenback gains ground
Dr Mohd Afzanizam says the market responded positively to news of hedge fund manager Scott Bessent heading the US Treasury Department.