The Walt Disney Company has agreed to pay $233 million to settle a lawsuit alleging wage theft against tens of thousands of its Anaheim employees.
Walt Disney Co. has agreed to settle a wage theft lawsuit for $233 million, ending a five-year dispute over pay for tens of thousands of Anaheim employees. Randy Renick, an attorney representing the workers in the proposed class-action lawsuit, said on Monday that the settlement would be the largest of its kind in California history. According to a Dec. 6 court filing, $179.6 million would go to plaintiffs in terms of back pay and retirement contributions. Another $17.
5 million in penalties will be paid to the California Labor and Workforce Development Agency. And $35 million will go toward attorney fees, with the remainder going to administration of the settlement. The lawsuit arose after Disney claimed it was exempt from Measure L, a 2018 voter-approved living wage initiative. The ordinance required any businesses in the city’s resort district that received city tax subsidies to pay workers at least $15 an hour starting Jan. 1, 2019, with hourly wages rising $1 annually through 2022. Employees backed by several Disney-based unions filed suit in 2019. A judge in 2021 agreed with Disney, a decision the unions appealed. In July 2023, a three-judge panel for California’s Fourth Appellate District disagreed with that interpretation. The same judge, Orange County Superior Court Judge William D. Claster, will render a decision on the wage theft settlement in February. If there are no further appeals, plaintiffs could expect payments in July 2025, according to court documents. Under terms of the settlement, the wage floor for Disney workers will rise to at least $20.50 hourly, beginning in January
DISNEY WAGE THEFT LAWSUIT SETTLEMENT CALIFORNIA
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