US Department of Labor and Walt Disney World Settle Wage Claim

[jcb]

The DOL announced a settlement with WDW today.

ORLANDO, Fla. — The U.S. Department of Labor's Wage and Hour Division has recovered $433,819 in back wages owed to 69 employees of Walt Disney Parks and Resorts U.S. in Orlando, Fla. The company agreed to make the payments following an investigation that uncovered violations of the Fair Labor Standards Act.

A Wage and Hour Division investigator found that inventory control clerks in the 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."

http://www.dol.gov/opa/media/press/whd/whd20101178.htm (I left out the DOL preaching).

As settlements of wage claims go with huge companies, this is in line with the average per employee recovery ($6,275.00 per employee). The release doesn't say the period of time investigated but the DOL usually goes back 2 years).

 

[kaligal]

Who gets the money?

 

[jcb]

Usually, the employer pays it directly to the employee (less withholdings and 401K contributions) when the employee signs the DOL form acknowledging the payment.

If WDW can't locate a former employee or they don't respond, then the remaining funds are paid to the DOL who will try to locate them. You would think folks would always want their money but with so many in military service, it is sometimes hard to communicate with them.