4:12pm ET
The Walt Disney Company has reached an agreement with the U.S. Department of Labor that will provide $3.8 million in back wages in order to comply with the Fair Labor Standards Act.
Under the new agreement, back wages will be paid to 16,339 cast members working either in the theme parks, or with Disney Vacation Club Management Corp.
This ruling comes after Disney was paying select cast members below the federal minimum wage and failed to pay overtime in under certain circumstances.
The investigative report shows Disney resorts in Florida deducted a uniform/costume expense that caused some employee's hourly rates to fall below minimum wage. In the past, Disney has been known to take a definitive percent out of a cast members paycheck if they have too many costumes or fail to return costume items for a period of time.
“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.