Disney Agrees To Massive Settlement in Wage Violation Case

Disney has agreed to pay $233 million to settle a wage violation lawsuit with its Disneyland workers.

At a Glance

Disney has agreed to settle a class-action lawsuit for $233 million for wage violations.
The lawsuit claimed Disney violated Measure L, mandating a living wage in Anaheim.
Roughly 50,000 current and former employees are impacted.
This is thought to mark the largest wage and hour class settlement in California.

A Closer Look at Disney’s Settlement

Disney has agreed to settle a class-action lawsuit, by paying $233 million to Disneyland Resort employees over wage violations. The settlement follows a lawsuit initiated by five cast members in 2019, which expanded to a class-action suit in 2021. The employees alleged that Disney failed to comply with Measure L, a living wage mandate for Anaheim resort businesses receiving tax subsidies. Measure L began at $15 per hour in 2019 and aims to increase to nearly $20.50 by January 2025.

The settlement includes $105 million in back pay plus interest, dating back to when Measure L took effect. Disney agreed to address issues retrospectively, providing back pay and penalties to affected workers. Disney claims most of its workers currently earn more than required. However, this lawsuit highlights how the company was allegedly underpaying employees until recent changes in compliance.

Disney agrees to pay $233M to settle wage theft class action lawsuithttps://t.co/bpG30D9sEb

— KTLA (@KTLA) December 16, 2024

Implications of Measure L

The lawsuit accused Disney of violating Measure L, requiring businesses receiving city tax subsidies to pay a minimum wage pegged at $17 per hour. Measure L was passed by Anaheim voters in 2018 to safeguard fair wages in the resort district. Despite Disney’s assertion of not benefiting from city subsidies, the court identified a 1996 agreement as a subsidy, binding Disney to Measure L’s wage requirements.

Disney claims its employees have been receiving the legal wages, yet this lawsuit made it evident that changes were needed. An agreement was reached in which Disney pledged to set a more favorable wage for union members. This emphasizes the importance of transparency and fairness in corporate wage practices.

Looking Forward

The settlement represents a significant change, impacting over 50,000 current and former employees. Orange County Superior Court Judge William Claster will review the settlement next month, underscoring the legal system’s role in workplace rights enforcement. Disney has been under scrutiny before, recently settling a separate gender pay gap lawsuit for $43 million. The company is working toward resolving wage discrepancies as evidenced by a recent agreement to raise union employees’ base pay to $24 per hour.

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