Disney Settles Wage-Theft Lawsuit for $233 Million

Disney has reached a settlement to pay $233 million to Disneyland resort workers, resolving a class-action lawsuit accusing the company of not following a voter-approved minimum wage law in Anaheim. This settlement is now the largest wage theft settlement in California’s history, according to the lawyers representing the resort workers.

In 2018, Anaheim voters approved Measure L, requiring all businesses in the city receiving city hall subsidies to pay their workers a minimum wage of at least $20 an hour starting in 2022. Additionally, the law mandated a 2% annual raise for workers indefinitely.

Richard McCracken, the lawyer representing the workers in the class action lawsuit, mentioned that all current and former Disneyland employees who were paid less than Measure L requires will receive 100% of the underpayment plus interest and penalties. If approved by a judge, this settlement means that workers will receive back pay since the lawsuit began five years ago, along with 10% interest.

Suzi Brown, a spokesperson for Disneyland, stated that their workers are already receiving the higher minimum wage. Currently, all cast members make at least $19.90 per hour, with 95% of them making more. Earlier this year, Disney had also agreed with a coalition of unions to raise the minimum wage to $24 an hour for 14,000 workers.

A panel of appellate court judges ruled last year that Disney was receiving city subsidies, contradicting Disney’s claim that they had not received any subsidies. This ruling allowed thousands of park employees to receive back pay that Disney had previously denied them.

This settlement stems from a class action lawsuit filed by Disneyland Resort workers in 2019, alleging that Disney was not abiding by Measure L, a law that city officials initially claimed exempted the billion-dollar company. Despite heavy spending against Measure L by resort interests, 54% of Anaheim voters approved the minimum wage law in the 2018 November election.

This settlement is a significant victory for Disneyland workers and serves as a reminder of the importance of fair wages and compliance with labor laws in California.