A judge approved Disney’s $233 million settlement in a wage theft lawsuit filed by Disneyland Resort employees.
Disneyland Wage Theft Settlement Approved
The lawsuit was initially filed by five Cast Members in 2019. It became a class action suit representing 51,478 employees in 2021. Last December, Disney agreed to the $233 million settlement.
Judge William Claster of the Orange County Superior Court granted final approval on Tuesday, September 16, The Orange County Register reports.
Richard McCracken, the lead attorney representing Cast Members, said, “This is the end of the lawsuit. We believe this is the largest wage class action settlement in California history.”
The $233 million will be distributed among current and former employees at an estimated $3,000 each.
“Have you ever heard of a class action settlement like that?” McCracken said. “It’s usually a coupon to buy an ice cream.”
The attorneys must submit a final report on the actual amounts paid to class members by June 30, 2026.
A Disney spokesperson wrote in a statement that the company “cares deeply about our cast members” and was “pleased that this matter is nearing resolution.”
The lawsuit stated The Walt Disney Company violated Measure L, which 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.
Disney claimed they were exempt from Measure L and Judge Claster initially sided with the media giant. The suit was then taken to California’s Fourth Appellate District, where a three-judge panel ruled in favor of the workers.
In October 2023, Disney increased pay of all Cast Members who “were not at or above the Measure L rate” to the required $19.40/hour. In July 2024, they agreed to raise the pay of over 13,000 Cast Members to a minimum of $24/hour.
California’s minimum wage is $16.50/hour.
Last year, Disney also agreed to pay $43 million in a gender pay gap lawsuit. This year, they settled their lawsuit with Gina Carano for an unknown amount. They also recently settled for $10 million with the FTC regarding children’s personal data being collected on their YouTube videos.
For more Disneyland Resort news and info, follow Disneyland News Today on Twitter, Facebook, and Instagram. For Disney Parks news worldwide, visit WDWNT.