Disney has agreed to pay $233 million to settle a class-action lawsuit regarding Disneyland Resort employee pay.
Disneyland Settles Employee Pay Class Action Lawsuit
Five Cast Members filed the original lawsuit in 2019 and it became class-action in 2021. The Cast Members claimed The Walt Disney Company violated Measure L, which was approved by voters the year before. It requires Anaheim resort businesses that receive tax subsidies, and their subcontractors, to pay employees a living wage. The wage started at $15/hour and increased each year. It will increase to nearly $20.50 in January 2025.
The Los Angeles Times reports that Disney approved the preliminary settlement on Friday. About $105 million of the settlement accounts for back pay with interest owed from January 1, 2019, when Measure L went into effect, until the date Disney adjusted wages last year.
Last summer, union Cast Members battled with Disney over contract negotiations for several months. Disney finally agreed to raise their base pay to $24/hour.
On top of the back pay, Disney agreed to pay penalties, interest, and other fees, totaling $233 million.
“What we believe is the largest wage and hour class settlement in California history will change lives for Disney families and their communities,” said Randy Renick, an attorney representing workers.
Cast Member Melissa Partida, 58, said, “It’s a big win and we’re happy. The cost of living here is very expensive. I don’t know how much back pay I’m going to get, but whatever it is, I didn’t have it before.” Partida is a tipped worker who earns $19.90/hour and has worked at Disney’s Grand Californian Hotel since it opened.
Professor Peter Dreier, co-author of “Working for the Mouse: A Survey of Disneyland Resort Employees,” said, “The company has been stiffing [thousands of] workers for several years. They’ve denied them the back pay they’re owed while paying CEO Bob Iger over $31 million a year. It’s only fair that workers get what’s coming to them. And if the world were fair, Iger would take some of it out of his paycheck.”
“It’s a win for the workers that stuck it out at the resort,” Dreier added, “and it’s a win for the workers that left because they couldn’t stand it anymore, but are now getting back pay. It’s a testament to the resilience and the fortitude of the labor movement and the workers.”
Orange County Superior Court Judge William Claster will review the settlement on January 17. After it is approved, workers will get a notice stating how much money they will receive. The settlement covers over 50,000 current and former employees.
Disneyland spokesperson Suzi Brown said, “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.”
Disneyland retail worker Mike Levia said the settlement is a relief and “has been a long time coming.”
“There are a lot of workers, myself included, that could benefit from this money,” Levia said. “It feels like a weight is being lifted off of their shoulders knowing that there’s going to be some extra money to help with the bills.”
Just a few weeks ago, Disney agreed to pay $43 million to settle a gender pay gap lawsuit.
For more Disneyland Resort news and info, follow Disneyland News Today on Twitter, Facebook, and Instagram. For Disney Parks news worldwide, visit WDWNT.