Disney to pay $233 million in landmark wage settlement with Disneyland workers
Around 52,000 employees to reportedly benefit from class-action suit.
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A California (USA) judge has approved a $233 million settlement between Walt Disney Co. and more than 51,000 Disneyland workers who accused the entertainment giant of denying them a legally mandated living wage, as per a Reuters report.
Judge William Claster of the Orange County Superior Court gave final approval on September 16, calling the settlement “fair, reasonable, adequate, and consistent with public policy.”
The agreement, the report added, ends a four-year class-action lawsuit that challenged how Disney compensated workers at its flagship Anaheim resort.
According to court filings, approximately $179.6 million will be distributed among 51,478 current and former employees- commonly known as “cast members.” An additional $17.5 million will be paid as a civil penalty to the California Labor and Workforce Development Agency, while $35 million will cover attorneys’ fees. Remaining sums will go toward administrative and other costs.
The dispute traces back to December 2019, when workers alleged Disney failed to comply with Measure L, a minimum wage law passed by Anaheim voters in 2018. The ordinance required businesses receiving city subsidies to pay resort-area employees at least $15 per hour in 2019, with automatic annual increases. Disney initially claimed it was exempt from the law, prompting legal action.
At present, Disney says nearly 96% of its employees earn more than $22 per hour, well above both the state minimum wage of $16.50 and the Measure L rate of $20.42.
The settlement is one of the largest wage-related payouts in the USA’s history and highlights ongoing tensions between hospitality giants and workers in one of the nation’s most expensive regions.
