Disney has come to a significant settlement of $233 million to resolve a class-action lawsuit brought by Disneyland employees, who accused the company of not adhering to Anaheim’s minimum wage laws.
Employees claimed they were underpaid, and legal representatives for the affected workers emphasized that this settlement would provide a substantial boost to their lives and families.
The Origins of the Legal Battle
The origins of this legal battle date back to 2018, when Anaheim voters approved Measure L. This measure required hospitality businesses that received tax rebates to raise their minimum wage to $15 per hour, with adjustments for inflation.
After the measure’s passage, Disney announced it would not seek tax rebates, which led to a lawsuit involving five Disneyland employees.
Initially, Disney’s legal team argued that the company shouldn’t be subjected to Measure L, interpreting the ordinance’s wording as applying solely to “rebates” tied to taxes paid by residents.
A court sided with Disney, concluding that the company hadn’t benefited from taxpayer subsidies.
However, this ruling was reversed in 2023 by a California state appeals court.
The three-judge panel of the 4th District Court of Appeal determined that Disney’s deals with Anaheim did indeed qualify as rebates and subsidies since they allowed the company to reclaim some tax payments.
Settlement and Future Implications
Disney sought to bring the case before the state Supreme Court, but the justices declined to hear the appeal or to reconsider the ruling made by the appellate court.
A Disneyland spokesperson expressed approval regarding the resolution of the claims brought by workers, noting that most employees already earn more than the minimum wage dictated by Measure L. They stated that all cast members make at least $19.90 an hour, with approximately 95% earning even higher wages.
While many affected workers await clarity on their individual settlements, some have voiced optimism about the financial compensation, suggesting it could dramatically improve their situations.
One cast member from the Bibbidi Bobbidi Boutique shared that receiving back wages would alleviate stress and help her prepare for emergencies or save for her children’s future.
She also highlighted how the unity and persistence of the workers over the past five years showcased their ability to effect change.
Union Agreements and Wage Increases
Additionally, Disney recently reached an agreement with four unions representing around 14,000 workers, which includes pay increases to a base rate of $24 per hour for union members.
Source: Legalreader