Disney agrees to pay Florida workers $3.8 million in back wages


  • Photo via Disney
The U.S. Labor Department released a statement today announcing that the Walt Disney Co. has agreed to pay $3.8 million in back wages to more than 16,000 Florida employees.

The Labor Department's Wage and Hour Division discovered multiple violations involving minimum wage, overtime and record-keeping, reports the Tampa Bay Times.

In fact, 16,339 employees from Disney Vacation Club Management Corp. and the Walt Disney Parks and Resorts U.S. Inc. will receive back wages.

According to a statement obtained by the Times, the Labor Department says Disney resorts in Florida used a "costume" expense to deduct wages from employees, causing some to fall under federal minimum wage. Besides not maintaining proper payroll records, the company also didn't pay employees for required pre-shift and post-shift duties.

"These violations are not uncommon and are found in other industries as well," Daniel White, district director for the Wage and Hour Division in Jacksonville, said in the statement. "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."