$3.8 Million Disney Fine Underscores Importance of Accurate Timekeeping

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When companies run afoul of labor laws, the fines can be sizeable.

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 staff members? Are you in compliance with all DOL provisions? 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 duties
Failure to pay employees for required post-shift duties
Allowing an employee’s hourly rate to temporarily fall below minimum wage because of a mandatory paycheck deduction for uniform expenses

Even a Couple Minutes Count

Keep in mind that the pre- or post-shift tasks for the Disney team members could have only taken a couple minutes. If an employee 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 team members to get their workstations ready, or perform other assignments before their authorized shift start times?

“Employers must accurately track and pay for all the hours their employees work.” -Daniel White2

Are You Prepared for an Audit? Advantage Payroll Services Has Tools to Protect You

If you are using pen and paper time and attendance systems, it’s almost impossible to accurately track staff member hours. TimeWorksPlus, TimeSimplicity, and TimeWorksTouch make up the Workforce Management Suite. Workforce Management Suite solves your compliance headaches.

  1. Track employee time to the minute
  2. Easy clock in/out for offsite employees
  3. Automatically create audit-ready reports

Because our suite is fully integrated, you won’t have any issues getting all of your time and attendance, scheduling, and payroll data synced together correctly.

Call today for a demo and learn how Workforce Management Suite can help you dodge the expenses 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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