Disney Agrees to Huge Settlement Over Alleged Wage Violations

Disney has agreed to hand over $233 million to settle a class-action lawsuit over wage violations at Disneyland, marking a significant victory for workers.

At a Glance

Disney has agreed to pay $233 million to settle a wage theft lawsuit involving over 50,000 Disneyland employees.
The lawsuit stems from a 2018 Anaheim law requiring a $15 minimum wage for companies with “tax rebate” agreements.
This settlement is considered the largest wage and hour class settlement in California history.
Currently, all Disney cast members earn at least $19.90 per hour, with 95% earning more.
The case highlights ongoing debates about fair wages and corporate influence in local politics.

Disneyland’s $233 Million Settlement: A Landmark Decision

Disney has agreed to pay $233 million to settle a class-action lawsuit over wage violations at Disneyland. The settlement, which involves over 50,000 current and former employees, covers back pay with interest and is being hailed as the largest wage and hour class settlement in California history.

The lawsuit originated from a 2018 Anaheim law that required companies with “tax rebate” agreements to pay a minimum wage of $15 per hour. Disney initially argued that the law didn’t apply to them, claiming they had canceled such agreements. However, an appellate court cited a 1996 expansion deal as evidence of ongoing tax benefits.

Disney agrees to pay $233M to settle wage theft class action lawsuit https://t.co/6RKZHFWa0e

— FOX 5 San Diego (@fox5sandiego) December 17, 2024

Worker Impact and Disney’s Response

The settlement, if approved by the judge, is expected to have a significant impact on the lives of many Disneyland employees. Workers are entitled to back pay with interest from the start of 2019, addressing years of alleged underpayment.

“This money is life-changing for a lot of Disney cast members and will make a tremendous difference for me and my family,” said Michi Cordell, a Disneyland employee.

Disney has responded to the settlement, stating that all cast members currently make at least the Measure L requirement of $19.90 per hour, with 95% earning more. The company recently agreed with unions to raise the base pay to $24 an hour, demonstrating a shift in their wage policies.

Legal Battle and Political Influence

The legal journey to this settlement was complex. Disney’s appeal to the California Supreme Court was denied, forcing the company to confront the wage violation claims. The case also highlighted Disney’s significant influence in Anaheim politics, including funding city council campaigns and opposing Measure L, which was ultimately approved by 54% of Anaheim voters in 2018.

“We are pleased that this matter is nearing resolution. Currently, all cast members make at least the Measure L requirement of $19.90 per hour, and, in fact, 95% of them make more,” said Suzi Brown, a Disneyland spokesperson.

The settlement follows years of protests and demonstrations by Disneyland employees demanding better wages and working conditions. Reports had previously highlighted instances of Disney employees living in their cars, drawing attention to the struggles faced by workers at “The Happiest Place on Earth.”

Looking Ahead: Wage Increases and Worker Rights

As part of the ongoing efforts to improve worker compensation, Measure L will increase the minimum wage to $20.42 on January 1, 2025, in Anaheim. This continued upward trend in wages reflects the growing awareness and action around fair compensation in the service industry.

“What we believe is the largest wage and hour class settlement in California history will change lives for Disney families and their communities,” stated Randy Renick, a lawyer representing the workers.

This landmark settlement not only addresses past wage discrepancies but also sets a precedent for how large corporations interact with local wage laws and their workforce. As the case concludes, it leaves behind a legacy of improved worker rights and a reminder of the power of collective action in addressing workplace inequities.