The U.S Department of Labor's Wage and Hour Division has ordered The Walt Disney Co. to pay 69 inventory clerks the amount of $433,000 in back wages after the company was found to have violated the Fair Labor Standards Act.
The decision was based on the complaint filed by the employees where they charged Walt Disney for not paying them for work done before and after their regular shifts, during meal times and when working from home. The inventory employees are assigned to work for the park's food and beverage department.
According to the investigation conducted by a US Department of Labor representative, it found out that Food and Beverage managers were not adhering to internal policies regarding off-the-clock work. Wage and Hour Deputy Administrator Nancy Leppink explicitly stated that, "It is not enough to have policies. Management must also ensure that all supervisors are implementing them."
FLSA rules on Hourly Wage
The FLSA requires that covered employees be paid time and one-half their regular rates of pay, including commissions, bonuses, and incentive pay, for hours worked over 40 per week. The term "hours worked" includes all time an employee must be on duty, or on the employer's premises or at any other prescribed place of work, from the beginning of the first principal activity of the workday to the end of the last principal work activity of the workday.
Furthermore, the law requires that accurate records of employees' wages, hours and other conditions of employment be maintained. The current federal minimum wage for covered, nonexempt employees is $7.25 per hour.
It is very interesting to note that when big companies become negligent of their responsibilities to their employees, they become prone and subject to lawsuits, and other settlement cases.
For a more detailed story, visit the DoL press release here.
Do you have a similar case?
If you have issues with compensation, overtime pay, or questions about hours worked, and believed that you have not been reasonably paid, or that your employer violates FLSA regulations, you may call the US Department of Labor's Wage and Hour Department toll-free helpline at 866-4US-WAGE (487-9243).
For a wealth of information on Wages and Hours, visit: http://www.dol.gov/whd
For RGIS employees, there is an ongoing lawsuit on compensation issues:
Updates on Lawsuit Against RGIS on Overtime
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Great news for those clerks. That's good money for 69 emplyees. I hope big companies learn ther lessons.
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