Disney Settles $43 Million Lawsuit Over Women’s Pay

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Walt Disney Co. has agreed to pay $43.3 million to resolve a lawsuit brought by a group of female employees who alleged gender pay discrimination. The settlement, filed in Los Angeles County Superior Court, does not admit fault on Disney’s part. The company has consistently denied accusations of paying women less than men and has emphasized its commitment to fair pay practices.

As part of the settlement, Disney will establish a fund to compensate the plaintiffs and will bring in an industrial/organizational psychologist to conduct training for Disney executives involved in job organization. Additionally, an outside labor economist will analyze pay equity for certain positions over the next three years.

The lawsuit originated in April 2019 with two women and expanded to include a total of nine plaintiffs who claimed they were paid significantly less than male colleagues performing similar roles. In December 2023, a Superior Court judge granted class-action status to part of the case, enabling the named plaintiffs to represent over 14,000 women employed by Disney in California between April 1, 2015, and December 28, 2024.

Employees of ESPN, Hulu, Pixar, and former 21st Century Fox employees who joined Disney, among others, were excluded from the class. The settlement funds will be distributed among class members, cover administrative expenses, and pay attorneys’ fees, ensuring that none of the funds will return to Disney.

After a successful mediation process in July, the $43.25 million settlement was reached, providing both financial compensation and non-monetary relief to current and future Disney employees. Plaintiffs’ attorney James Kan expressed satisfaction with the settlement, highlighting the significant payment for class members and the positive impact on Disney’s workplace practices.

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