The Walt Disney Company is the American entertainment conglomerate that managed to put a smile on kids and adults alike since 1923 through original and moving productions. However, it seems that employees do not benefit the same pleasant treatment. Thousands of employees who have been working in hotels and resorts are to receive financial compensations over the way their company treated them. This is because the U.S. Labor Department has recently found a series of violations of the minimum wage rules.
Around 17,000 Workers Had their Wage Rules Infringed
The U.S. Department of Labor conducted an investigation regarding the Walt Disney Company and its adherence to the minimum wage rules. However, the research ended up with the uncovering of a series of violations to the detriment of Disney employees. This is why the entertainment organization has to settle the accusations for almost $4 million. The fine will be paid in the form of wages to a total of 16,339 workers.
Thus, each damaged party will be entitled to $233. The report created based on the data collected during the investigation showed that employees were not remunerated for their extra work. Each working day, they logged in for 15 extra minutes before and after their shifts. This happened for several times and not just occasional. Moreover, the company used a uniform deduction as an excuse to lower the rates per worked hour below the minimum wage rules. Nonetheless, this resort did not manage to register entire hours that employees worked. This means that they weren’t paid for this batch of hours either.
Disney Was Compliant with the Federal Agents
The U.S. Department of Labor did not comment on the reason why authorities started this investigation. The employees in question cover a staff of 700 members that have been working for the Old Key West Resort since November 2013. The rest of approximately 15,000 members are part of the staff of other Florida resorts since January 2015.
The company declared that the U.S. Department of Labor has indeed identified employees that worked overtime. However, the official explanation for this situation is that the persons in question worked outside their schedule. Thus, the company did not have any records concerning the overtime performance. Nonetheless, Disney agreed to offer a one-time payment as compensation. Moreover, the agreement requires training at the level of the management as well. Higher-ranked staff needs to learn when it is proper or not to compensate overtime.
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