Walt Disney Co. has agreed to pay $3.8 million in back wages, after a U.S. Department of Labor investigation found the company in violation of the Fair Labor Standards Act.
Some 16,339 hotel and time-share management employees will receive a portion of the near $4 million pay out. The Labor Department’s Wage and Hour Division found Disney in violation of U.S. minimum wage standards, overtime compensation, and bookkeeping provisions, it reports.
Resort employees incurred a uniform, or “costume,” deduction from their paychecks, causing their hourly compensation to fall below the federal minimum wage. Disney resorts also reportedly did not pay employees for work-related activities performed before and after their designated shift. Management failed to keep any time or payroll records.