Plaintiffs Seek Class Certification In Disney California Wage and Hour Class Action

Disney workers have filed a California wage and hour class action lawsuit alleging that the company miscalculated overtime and premiums.

Plaintiffs Jose V. and Erica C. claim that their wage statements clearly show that Walt Disney Parks and Resorts U.S. Inc. failed to accurately calculate pay incentives and pay them accordingly.

Employees who have additional responsibilities or work outside 9 a.m. to 5 p.m. are eligible for premium pay and incentives which are tacked on to regular or overtime wages. This led to the California wage and hour lawsuit.

However, Disney allegedly miscalculates the premium wages in order to underpay their employees, the plaintiffs claim. The entertainment company allegedly calculates overtime wage rates without considering incentive pay as part of the regular rate of pay. Jose and Erica claim that this is a miscalculation which results in underpaid employees.

“By paying ‘overtime’ at exactly time and a half of plaintiffs’ regular hourly pay of $10 an hour, plaintiffs’ theory of liability is that [Walt Disney] is liable for underpaying overtime wages by not including premium payment,” the Disney California wage and hour class action states. “Common issues of fact and law predominate this issue because [Walt Disney’s] uniform payroll and coding system treated the payment of these premium payments the same.”

The two Disney workers also challenge the company’s policy of paying premium wages as a “credit against overtime wages that were not paid.”

Disney has also been accused of forcing their employees to work off the clock for loss prevention inspections. Plaintiffs originally included shuttle rides in their off the clock work claims, but the allegations were dropped after Disney showed that the trip was optional.

Jose and Erica originally filed their California wage and hour class action in state court, but the suit was removed to federal court by Disney in November 2017. The plaintiffs allege violations of the Fair Labor Standards Act and California wage and hour laws.

According to a recent motion for class certification, the outcome of the Disney California wage and hour class action could depend on whether Disney was permitted to credit some premiums at time and a half while not crediting others. The California wage and hour case may also depend on if Disney was allowed to increases overtime wages paid in order to account for employee premiums.

Plaintiffs seek to represent two Classes in their California wage and hour class action lawsuit. The first Class includes Disney employees in California who were classified as non-exempt employees while working for the company within the last four years. The second Subclass includes Disney employees in California who were classified as non-exempt within the last three years.

Although the two Classes are only differentiated by the relevant time period, plaintiffs bring different claims for Class Members of each of the two Classes.

The Disney California wage and hour suit seeks payment of withheld wages, restitution, disgorgement, compensatory damages, court costs, and attorneys’ fees.

The Disney California Wage and Hour Class Action Lawsuit is Case No. 8:17-cv-01988 in the U.S. District Court for Central California.

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