According to a report from the LA Times, The Walt Disney Company has agreed to a $233 million settlement over violations of an Anaheim minimum wage law. The class-action lawsuit was filed in December 2019, and the settlement will include more than 50,000 current and former Disney employees.
Disney Minimum Wage Class Action Lawsuit Settlement
Anaheim voters passed a law called Measure L that required a minimum wage of $15 and hour for employers in the Anaheim Resort area that benefited from tax rebates with the city. Disney did not adjust wages in accordance with the law and then later argued that they did not have tax rebates with the city.
A judge initially agreed with Disney, but then the matter was overturned in the Court of Appeal. Disney ended up trying to appeal the overturned decision, but the California Supreme Court declined to hear the case. That basically ended Disney’s legal fight, and then it was a matter of damages.
Disney approved a preliminary settlement yesterday, which will offer back pay with interest to more than 50,000 employees and cost the company nearly a quarter of a billion dollars. Back pay will date back to January 1, 2019, which is when Measure L took effect. The back pay alone will be more than $100 million. The other money will cover penalties, interest, and other fees.
A Disney spokesperson said “We are pleased that this matter is nearing resolution. Currently, all cast members make at least the Measure L requirement of $19.90 per hour, and, in fact, 95% of them make more.”
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