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U.S. Navy Blue Angels Soar Above Cinderella Castle At Walt Disney World Resort
LAKE BUENA VISTA, FL - MARCH 19: In this handout photo provided by Disney Parks, in a special moment for Magic Kingdom guests, the U.S. Navy Flight Demonstration Squadron, the Blue Angels, streaked across the skies above, Cinderella Castle March 19, 2015 at Walt Disney World Resort in Lake Buena Vista, Florida. The flyover featured the Blue Angels' six-jet F/A-18 Hornet Delta Formation making two dramatic passes above the Magic Kingdom, with Cinderella Castle as a focal point, en route to an air show in Florida. (Photo by Mariah Wild/Disney Parks via Getty Images) Handout Getty Images

Disney Is Going to Pay $3.8 Million to Employees Who Were Charged for Their Costumes

Mar 17, 2017

Walt Disney Co. will pay more than 16,000 Florida employees a total of $3.8 million in back wages after charging them for their costumes, according to the Department of Labor.

The department reports Walt Disney Co. violated wage laws by deducting uniform or “costume” expenses from some employees' hourly pay. The company will now pay back wages to 16,339 employees from the Disney Vacation Club Management Corp. and Walt Disney Parks and Resorts — including Disney World in Florida.

Disney violated the labor department’s minimum wage, overtime, and record-keeping provisions. By deducting money for costumes from some employees’ paychecks, these employees made below federal minimum wage (which is $7.25).

The department also found Walt Disney Co. did not keep proper payroll records and did not compensate some employees for overtime.

In a press release from the Department of Labor, Daniel White, district director for the Wage and Hour Division in Jacksonville, Fla., said these violations “are not uncommon” in other industries.

“Employers cannot make deductions that take workers below the minimum wage and must accurately track and pay for all the hours their employees work, including any time they work before or after their scheduled shifts,” White said in the statement.

White said Disney was “very cooperative throughout the investigative process.”

A Disney spokesperson could not be reached by Fortune for comment.

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