Disney’s historic $233 million wage theft settlement with Disneyland workers is poised to conclude a lengthy legal battle and signifies significant changes for its employees.
At a Glance
- Walt Disney Co. has agreed to settle a $233 million lawsuit over wage theft with Disneyland employees.
- The settlement covers over 50,000 current and former workers.
- Back pay and retirement contributions account for $179.6 million of the settlement.
- This is believed to be the largest wage and hour class settlement in California’s history.
Details of the Settlement
Walt Disney Co. has agreed to pay $233 million to settle a class-action lawsuit over wage theft claims by thousands of Disneyland workers. The lawsuit, initially filed five years ago, accused Disney of ignoring Anaheim’s minimum wage law. Over 50,000 current and former Disney employees are covered in what’s considered the largest wage and hour class settlement in California history.
The back pay owed, amounting to approximately $105 million, dates back to January 1, 2019, when the wage law came into effect. Orange County Superior Court Judge William Claster will review the settlement and decide whether to grant its approval on January 17. This historical settlement comes after complex discussions and a reversal of Disney’s initial legal win, which cited a 1996 tax rebate agreement as the basis for the appellate court’s decision.
Legal and Financial Implications
Total allocation from Disney’s settlement includes $179.6 million for compensation to the plaintiffs in back pay and retirement contributions. If the settlement is approved, an additional $17.5 million will be paid in penalties to the California Labor and Workforce Development Agency, with $35 million designated for attorney fees. Additionally, the wage floor for Disney workers will see a gradual increase, reaching a minimum of $24 per hour for over 13,000 cast members by July 2024.
“We are pleased that this matter is nearing resolution,” Disneyland spokesperson Suzi Brown stated.
The dispute began in February 2018, following a survey highlighting economic hardships faced by Disney workers. Disneyland spokesperson Suzi Brown mentioned that all cast members are now earning at least $19.90 per hour, with 95% earning more. These wage adjustments aim to comply with Measure L, which required a minimum wage for companies with “tax rebate” agreements with Anaheim.
Disney Settles Wage-Theft Lawsuit for $233 Million https://t.co/kSNDOcMLbm
— Voice of OC (@VoiceofOC) December 16, 2024
Future Implications for Disney Workers
Going forward, Disney aims to align with Measure L requirements and other pertinent wage laws to avoid further legal challenges. The settlement underscores the impact of employee advocacy and the courts’ role in upholding wage standards backed by local statutes. Disney had received about $200 million in tax rebates for previous construction projects, sometimes generating controversy over tax incentives and subsidies.
“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 said.
While Disney has addressed these wage issues through significant financial commitments and policy changes, this case highlights the broader discussion of corporate responsibilities and workers’ rights within large corporations. The financial impact and legal precedents set by this case may influence how companies operate under city and state wage statutes in the future.
Sources
- Disneyland agrees to state’s largest wage theft settlement of $233 million with its workers
- Disney agrees to $233 million wage theft settlement for California’s theme park employees
- Disney Agrees To Pay $233M To Settle Class-Action Lawsuit By Disneyland Workers
