(CN) – Two Walt Disney Co. subsidiaries in Florida have agreed to pay employees $3.8 million in back wages to settle violations of the Fair Labor Standards Act.
The U.S. Labor Department announced Friday the Disney Vacation Club Management Corp. and the Walt Disney Parks and Resorts U.S. Inc. will pay the back wages to 16,330 employees after having been found in violation of the minimum wage, overtime and recordkeeping provisions of the FLSA.
The violations stem from the Disney resorts practice of deducting a uniform or “costume” expense that caused some employees’ hourly rates to fall below the federal minimum wage, the departments Wage and Hour 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.
Additionally, the resorts failed to maintain required time and payroll records.
“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.
He added that the resorts “were very cooperative throughout the investigative process and worked with the division to ensure employees received the pay they earned.”
Representatives of the companies could not immediately be reached for comment.