$3.8 Million Disney Fine Underscores Importance of Accurate Timekeeping

DOL compliance systems Islandia

When companies run afoul of labor regulations, the fines can be staggering.

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 observe the the Fair Labor Standards Act overtime, minimum wage, and record keeping standards.

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

Even a Couple Minutes Count

Keep in mind that the pre- or post-shift tasks for the Disney staff members could have only taken a couple minutes. If a staff member 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 tasks before their prescribed shift start times?

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

Are You Prepared for an Audit? baronHCM Has Tools to Protect You

If you are using old school manual timekeeping systems, it’s almost impossible to accurately track associate hours. Baron Time, Baron Scheduling, and Baron Workforce Management Clock make up the Baron Workforce Management SuiteBaron 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 properly.

Call today for a demo and learn how Baron Workforce Management Suite can help you avert the costs 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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