Judge considering $233M Disney settlement for class-action lawsuit
An impending decision by Orange County Superior Court Judge William D. Claster regarding the approval of a $233 million settlement with Disney in a class-action lawsuit related to a dispute over Anaheim’s minimum wage law is looming. Recent reports indicate that the settlement agreement, which was reached last month, includes provisions for attorneys’ fees of nearly $35 million. The lawsuit involves approximately 51,000 workers who are seeking compensation for lost wages, service charges, and retirement contributions due to the salary dispute.
Court documents reveal that the proposed settlement not only aims to address these financial grievances but also tackles an additional issue involving approximately $5.7 million in underpaid service charges throughout the class period. This comprehensive resolution is seen as a positive outcome for the class as it circumvents the necessity of a trial and the likelihood of subsequent appeals. The legal proceedings stem from a lawsuit filed on December 6, 2019, wherein the plaintiffs alleged that Disney violated Anaheim’s minimum wage ordinance of at least $15-$17 an hour, which was adopted in 2018.
Disney initially argued that the ordinance was not applicable to its workers, a stance that led to the dismissal of the case on November 1. However, the plaintiffs persisted and succeeded in overturning the lower court ruling on July 13, 2023. Subsequently, appellate justices ruled in favor of the union workers, emphasizing that Disney, by virtue of receiving subsidies from the city, must comply with the minimum wage requirements. Despite these legal battles, Disneyland officials have mentioned that many skilled hourly roles already exceed a starting rate of $25 an hour.
In light of these developments, Disneyland spokesperson Suzi Brown expressed satisfaction that the resolution of this matter is on the horizon. Currently, all cast members meet or exceed the Measure L requirement of $19.90 per hour, with 95% of them earning above this threshold. While past legal challenges have caused uncertainty and friction, this settlement offers a path towards amicable closure for all parties involved.
As the court prepares to deliberate on the approval of the settlement, it marks a critical juncture in the ongoing saga between Disney and its workers. The outcome of this decision will have significant financial implications for tens of thousands of employees affected by the dispute over Anaheim’s minimum wage requirements. Ultimately, this resolution represents a pivotal moment in the quest for fair wages and compensation for workers within the Disney community.
