The Walt Disney Co. has reached a California record $233 million settlement with Disneyland workers over a 2019 class-action wage theft lawsuit.
The settlement will provide back pay to workers at the Anaheim theme park, with interest dating back to the start of 2019, and comes as Anaheim is set to raise the minimum wage to $20.50 per hour at the start of 2025. Disney approved the preliminary settlement on Friday and it will be reviewed by a Superior Court judge on Jan. 17 before workers are notified.
The lawsuit alleged that in 2019, Disney did not adjust wages in accordance with the passage of Measure L, an Anaheim ballot proposition that required companies that received tax rebates from the city — namely Disney — to pay at least $15/hour.
Disney’s attorneys argued that it did not have tax rebate agreements with Anaheim and wasn’t subject to the terms of the law. A judge initially sided with Disney, but an appellate court reversed the decision after it was determined that such agreements were made with the city as part of a 1996 expansion deal that helped pave the way for the creation of Disneyland’s neighbor park, Disney’s California Adventure.
The California Supreme Court later turned down Disney’s request to hear the case, ending the legal battle.
The settlement is the latest victory for Disneyland workers after a multiyear labor campaign in which employees outlined the financial struggles they face despite being employed by the beloved “Happiest Place on Earth.” The park’s employees staged protests outside the entrance to the Disneyland Resort and shared stories of their struggles to reporters and on social media.
Their struggle even reached the attention of Walt Disney’s grandniece, Abigail E. Disney, who interviewed Disneyland employees for her 2022 documentary, “The American Dream and Other Fairy Tales.” Some employees told her that they had to live out of their cars on the streets of Anaheim and struggled to even provide food for their families.
Along with the lawsuit, Disney workers pushed for stronger wages through their union reps at the Master Services Council, a coalition of four unions that represent over 14,000 Disneyland employees. After voting to authorize a strike, MSC members and negotiators reached a deal that raised base pay to $24/hour.
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