Disney to pay back wages after agreement with US Labor Department

Over 16,000 Disney employees who work for Walt Disney Parks and Resorts and Disney Vacation Club Management in Florida are eligible for back wages after the Mouse House met with the US Department of Labor and agreed to comply with the Fair Labor Standards Act and reimburse employees for previous violations.

Disney was found to have multiple offenses including: not compensating employees who performed duties during a pre-shift period before the start of their shifts or during a post-shift period, maintaining the required time and payroll records, and deducting a costume expense that caused some employees’ hourly rates to fall below federal minimum wage standards.

“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. “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,” White said.

Disney is expected to pay $3.8 million in back wages to employees who were affected by the rules violations. Disney’s current contract with its largest unions starts employees a minimum of $10 an hour after a two-year process that saw it increase from $9 an hour.