Walt Disney Parks and Resorts in Orlando has agreed to pay hundreds of thousands of dollars in back wages to employees as they are in breech of the Fair Labor Standards Act, a release from the U.S. Department of Labor said on Thursday. The company will pay over $433,000 to 69 workers.
An investigator from the U.S. Department of Labor’s Wage and Hour Division found that 69 inventory control clerks who work in the theme park’s Food and Beverage Department were not paid for work activities occurring before and after their normal shifts. In addition, they were not paid for working through their meal times and when working from home.
“While Walt Disney has specific rules regarding off-clock work, an investigation conducted by the Department of Labor’s Wage and Hour Division found that managers within the company were not adhering to those important policies,” said Wage and Hour Deputy Administrator Nancy Leppink. “It is not enough to have policies. Management must also ensure that all supervisors are implementing them.”
The Fair Labor Standards Act (FLSA) requires that covered employees be paid time and one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked over 40 per week.
In general, “hours worked” includes all time an employee must be on duty, or on the employer’s premises or at any other prescribed place of work, from the beginning of the first principal activity of the workday to the end of the last principal work activity of the workday. Additionally, the law requires that accurate records of employees’ wages, hours and other conditions of employment be maintained. The current federal minimum wage for covered, nonexempt employees is $7.25 per hour.
Disney was found to be in violation of the Fair Labor Standards Act, following an investigation by the Department of Labor and will pay the workers, $433,819 in back wages.
