DOL warns these types of FLSA violations aren’t uncommon
The Walt Disney Co., primarily known for creating children’s entertainment, recently provided valuable lessons to employers about wage-and-hour law.
The lessons: Watch for pre- and post-shift work that goes unpaid, as well as pay deductions that drop workers below minimum wage.
Following an investigation by the Dept. of Labor (DOL), it was determined two Disney subsidiaries violated the minimum wage and overtime rules of the Fair Labor Standards Act (FLSA).
DOL investigators said Disney Vacation Club Management Corp. and Walt Disney Parks and Resorts U.S. Inc. deducted a uniform expense that caused employees’ hourly rates to fall below the federal minimum wage. In addition, the resorts failed to pay some employees for performing duties during pre- and post-shift periods.
Result: Disney and the DOL reached an agreement, and Disney will provided $3.8 million in back wages to the 16,339 affected workers.
What to watch out for
Under the FLSA:
Although deductions may be OK in the and of themselves, if they take someone’s earnings below minimum wage, they become problematic, and
Even if employees are doing tasks during times that occur before or after their scheduled shifts, in actuality that may be considered time worked.