Although many class members do not yet know how much money they could receive from the settlement, some workers have since said the compensation will be “life-changing.”
Disney has agreed to pay $233 million to settle a class-action lawsuit alleging that it violated Anaheim minimum wage ordinances by underpaying workers at Disneyland.
According to The Hollywood Reporter, attorneys for the class members have said that the settlement fund will provide a source of significant relief for underpaid Disneyland employees.
“This settlement will put significant awards in the hands of those workers and positively impact their lives as well as the health and well-being of their families,” attorney Randy Renick said in a statement.
Voters in the Southern California city of Anaheim approved Measure L in 2018.
Under Measure L, hospitality businesses receiving tax rebates were required to increase their minimum wage to $15 per hour. This amount was to be revised in accordance with inflation.
Shortly after the initiative was approved, Disney signaled that it would no longer receive rebates.
In response, five Disneyland employees sued.
Attorneys for Disney then argued that the company should never have been subject to Measure L, as the language of the ordinance defines a “rebate” as the return of taxes paid by residents. A court sided with Disney, finding that the company had never been subsidized by Anaheim taxpayers.
However, in 2023, a state appeals court reversed that decision. In its ruling, a three-judge panel from California’s 4th District Court of Appeal concluded that Disney’s decades-long agreements with the city of Anaheim constitute rebates and subsidies because they afford the company the right to “receive a return of taxes.”
Disney tried to appeal the case to the state Supreme Court, but the justices declined to hear the claim or review the appellate panel’s decision.
A spokesperson for Disneyland said that the company is pleased to settle the workers’ claims—and emphasized that most Disneyland employees earn a higher wage than required by Measure L.
All cast members “make at least the Measure L requirement of $19.90 per hour, and, in fact, 95% of them make more,” a Disney spokesperson said in a statement. “We are pleased that this matter is nearing resolution.”
Although many class members do not yet know how much money they could receive from the settlement, some workers have since said the compensation will be “life-changing.”
“This money is life-changing for a lot of Disney cast members and will make a tremendous difference for me and my family,” said class member Michi Cordell, a “Fairy Godmother’s Apprentice” at the Bibbidi Bobbidi Boutique in Disneyland. “I have two small children, and getting potentially thousands of dollars in back wages I’m rightfully owed gives me peace of mind that I have money in case of an emergency or savings for their future. We’ve shown throughout these five years, and especially this last year in contract negotiations, that when we stand up for what we deserve, together, we can accomplish anything.”
KTLA notes that Disney also recently reached an agreement with four unions representing about 14,000 workers. As part of that agreement, Disney will raise union members’ base pay to $24 per hour.
Sources
Disney agrees to pay $233M to settle wage theft class action lawsuit
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