Disney Pays $3.8M for Violating Minimum Wage Rules

The department's Wage and Hour Division says Disney deducted uniform or "costume" expenses that caused some workers' hourly wages to fall below the federal minimum wage.

The Walt Disney Co. has agreed to pay $3.8 million in back wages to Florida workers for violating minimum wage and overtime rules as part of an agreement with the U.S. Department of Labor.

The federal agency said Friday that the back wages will be paid to more than 16,000 workers at the Disney Vacation Club Management Corp. and Walt Disney Parks and Resorts in Florida.

The department's Wage and Hour Division says Disney deducted uniform expenses that caused some workers' hourly wages to fall below the federal minimum wage. Time and payroll records were also not properly maintained by the resort.

The division also says Disney didn't pay workers for duties performed before their shifts started and after their shifts ended.

The agency says Disney cooperated with their investigation.

“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.”

A Disney spokeswoman didn't respond immediately to an email seeking comment.