Disney to pay $3.8 million in back wages to Cast Members

The Walt Disney Company has agreed to pay $3.8 million in wages to over 16,000 employees of Disney Vacation Club Management Corp and Walt Disney Parks & Resorts.  

Disney's Old Key West Resort

Disney's Old Key West Resort

The payments stem from policies which failed to pay employees for 15 minutes of work before and after their shifts.  Additionally, uniform expenses deducted from some workers' pay caused them to fall below federal minimum wage guidelines.  

According to the Orlando Sentinel, the back pay applies to 700 employees of Disney's Old Key West Resort dating back to November 2013. Another 15,000 individuals working at other Walt Disney World locations back to January 2015 are also due additional compensation. 

The payments are due to be made by July 31, 2017 and will average $233 per worker.  

In a statement, Daniel White, district director for the Wage and Hour Division claims that such violations are not uncommon.  White hopes that the visibility of this case will prompt other employers to "correct their practices and operate in compliance with the law."  

Disney was cooperative throughout the investigation.  

Reader Comments
Re: Disney to pay $3.8 million in back wages to Cast Members -- simbasmom
2017 Mar 18 12:07:19 PM
OK, I'm going to wonder here whether members will be asked to pay for this out of their dues or whether Disney will step up and take the cost themselves.
Re: Disney to pay $3.8 million in back wages to Cast Members -- graydogg51
2017 Mar 18 12:18:39 PM
simbasmom wrote:
OK, I'm going to wonder here whether members will be asked to pay for this out of their dues or whether Disney will step up and take the cost themselves.

Our dues are maintenance fees for the resorts. Wages come out of operating budgets. It'll come out of their profit margin.


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Re: Disney to pay $3.8 million in back wages to Cast Members -- denlo
2017 Mar 18 01:23:23 PM
You would think there would be more penalties that would give those employees, the interest on the wages they were not paid over 20 years ago.
Re: Disney to pay $3.8 million in back wages to Cast Members -- TimK
2017 Mar 18 04:41:15 PM
simbasmom wrote:
OK, I'm going to wonder here whether members will be asked to pay for this out of their dues or whether Disney will step up and take the cost themselves.

Probably not. When dues set each year, Disney guarantees that they will cover any overages in the resort operating costs. Since this will be paid in 2017, Disney can't charge owners anything else this year, nor can they back-charge owners in 2018 or beyond.
graydogg51 wrote:
Our dues are maintenance fees for the resorts. Wages come out of operating budgets. It'll come out of their profit margin.

OKW Cast Members were singled out as being impacted, so some resort staff is clearly involved.

If DVC administrative staff or sales staff are involved, I agree most of those would fall under DVC's own operating budget rather than member dues.

Maybe Marilyn has some insight to share regarding exactly what happened here. I think it may have something to do with costuming guidelines for resort staff--perhaps being required to change on-site and not being properly compensated for that time.
denlo wrote:
You would think there would be more penalties that would give those employees, the interest on the wages they were not paid over 20 years ago.

It doesn't go back any further than 2013--four years. And I can pretty much guarantee that there's some interest penalty or other make-good compensation included in what the employees will receive.

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