Disney Pays $3.8M to End DOL’s Case Over Deduction of Workers Costumes From Pay

The Walt Disney Company does its best to project a wholesome image at its theme parks and resorts. But like any company sometimes this behemoth slips up and doesn’t comply with labor laws.

An agreement the company reached with the Labor Department, announced today, puts a stop to the company’s practice of deducting a uniform or “costume” expense, causing some employees’ hourly rates to fall below the federal minimum wage, the division said. The resorts also did not compensate employees performing duties during a pre-shift period before the designated start of their shifts, and during a post-shift period, the DOL alleged. Additionally, the resorts failed to maintain required time and payroll records.

Under the agreement, back wages will be paid to 16,339 employees of the Disney Vacation Club Management Corp. and the Walt Disney Parks and Resorts U.S. Inc., both in Florida.

Here’s DOL’s announcement of the settlement.

My thanks to Jon Hyman for featuring this blog post in his March 24 weekly roundup on the Ohio Employer’s Law Blog.

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