When businesses run afoul of labor provisions, the fines can be astronomical.
Recently, Walt Disney Co. reached an agreement with the Department of Labor to pay out $3.8 million to 16,339 employees. The DOL’s Wage and Hour Division concluded that Florida-based Disney Vacation Club Management Corp. and Walt Disney Parks and Resorts U.S. Inc. failed to comply with the Fair Labor Standards Act overtime, minimum wage, and record keeping regulations.
Do you employ hourly employees? Are you in compliance with all DOL regulations? DOL officials say that the illegal Disney practices are fairly widespread.
“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, Florida1
These are some of Disney’s specific violations:
Failure to pay employees for required pre-shift responsibilities
Failure to pay employees for required post-shift duties
Allowing an employee’s hourly rate to temporarily fall below minimum wage because of a nonelective paycheck deduction for uniform expenses
Even a Couple Minutes Count
Keep in mind that the pre- or post-shift duties for the Disney staff members could have only taken a couple minutes. If a staff member is supposed to change into a uniform (or costume in the Disney case) before their scheduled shift, they must be paid for this time. Do you require your employees to get their workstations ready, or perform other responsibilities before their designated shift start times?
“Employers must accurately track and pay for all the hours their employees work.” -Daniel White2
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Call today for a demo and learn how Workforce Management Suite can help you avoid the costs of a labor audit.
Sources:
1 “Disney Reaches Agreement on Pay Practices with the US Department of Labor,” US Department of Labor, March 17, 2017, https://www.dol.gov/newsroom/releases/whd/whd20170317, accessed May 9, 2017
2Jennifer Calfas, “Disney Is Going to Pay $3.8 Million to Employees Who Were Charged for Their Costumes,” Fortune, March 17, 2017, http://fortune.com/2017/03/17/disney-labor-department-costumes-employees-charged/, accessed on May 9, 2017
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