The Walt Disney Co. has entered into a settlement agreement to the tune of $233 million in response to a class-action lawsuit alleging wage theft. The suit, initiated by Disneyland employees, claimed that the company did not comply with Anaheim's minimum wage laws, prompting a battle for back pay plus interest, as reported by KTLA.
This preliminary settlement, approved by Disney on Friday, is intended to compensate more than 50,000 current and former park employees and will quickly be reviewed by Orange County Superior Court Judge William Claster on Jan. 17. Once approved, it will set out to begin to rectify the underpayment issues dating back to Jan. 1, 2019, when Anaheim's minimum wage law was triggered into effect. Randy Renick, an attorney for the workers, told KTLA, "What we believe is the largest wage and hour class settlement in California history will change lives for Disney families and their communities."
According to the lawsuit, the disagreement began in 2018 when a survey by labor unions revealed that Disney workers were struggling to meet basic living expenses. Following that revelation, Anaheim voters approved Measure L, raising the minimum wage to $15 per hour for companies that had certain subsidies from the city. This law was further underscored by a recent amendment, setting a new minimum wage hike to $20.42, scheduled for January 1, 2025. Despite the legislation, Disney did not alter its pay structure in line with the law, which led to the class-action lawsuit filed in December 2019.
However, Disney has since updated its employee compensation structure. Disneyland spokesperson Suzi Brown said, "Currently, all cast members make at least the Measure L requirement of $19.90 per hour, and, in fact, 95% of them make more," as stated by Patch. The company had also agreed to a new contract in July, raising the minimum wage for unionized workers to $24 an hour.
For employees like Michi Cordell, a Fairy Godmother’s Apprentice at Disneyland’s Bibbidi Bobbidi Boutique, the settlement represents not only financial relief but also a victory for collective effort. "This money is life-changing for a lot of Disney cast members and will make a tremendous difference for me and my family," Cordell shared in a statement obtained by KTLA.
