The Walt Disney Company has agreed to a $233 million settlement to resolve a class-action lawsuit filed by Disneyland workers, marking one of the largest wage theft settlements in California’s history.

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Background:

In 2018, Anaheim voters approved Measure L, a living wage ordinance requiring resort businesses benefiting from city tax subsidies to pay employees a minimum wage starting at $15 per hour, with scheduled increases. Disneyland workers alleged that Disney did not comply with this ordinance, leading to a lawsuit filed in 2019.

Settlement Details:

Amount: $233 million, covering back pay with interest, penalties, and other fees.

Beneficiaries: Over 50,000 current and former Disneyland employees.

Timeframe: Compensation covers wages owed from January 1, 2019, when Measure L took effect, until Disney adjusted wages in 2023.

A California state judge is scheduled to review the settlement on January 17, 2025. If approved, affected employees will be notified of their individual compensation amounts.

Current Wage Status:

As of October 2023, following the final court ruling, Disney increased wages to meet Measure L requirements. In July 2024, Disney negotiated an agreement with unionized workers to raise the minimum hourly rate to $24, exceeding the Measure L requirement of $19.90.

Statements:

Disneyland Spokesperson: “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.”

Workers’ Attorney: “What we believe is the largest wage and hour … .”

This settlement underscores the importance of adhering to local wage laws and reflects ongoing efforts to ensure fair compensation for employees in the entertainment and hospitality industries.

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