Disney Settles $43 Million Lawsuit Over Women’s Pay

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

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

The lawsuit began with two women in Southern California in April 2019 and later expanded to include a total of nine women who alleged significant pay disparities compared to men in similar roles. In December 2023, a Superior Court judge granted class-action status to a portion of the case, allowing the plaintiffs to represent over 14,000 women who worked at Disney in California between April 1, 2015, and December 28, 2024, below the level of Vice President in salaried, full-time, non-union positions.

The settlement excludes employees from ESPN, Hulu, Pixar, and former 21st Century Fox units who joined Disney. The settlement proceeds will go towards compensating class members, covering administrative costs, and attorneys’ fees, with none of the funds reverting back to Disney.

After a successful mediation process in July, the parties agreed on the $43.25 million settlement, providing a substantial payment to class members and implementing non-monetary relief for current and future employees without the uncertainties of prolonged litigation. This settlement marks a significant step towards addressing gender pay disparities and ensuring fair pay practices at Walt Disney Co.