Disney Settles Disneyland Minimum Wage Class-Action Lawsuit
The Walt Disney Company has agreed to settle a class-action lawsuit that accused the Mouse House of circumventing the Anaheim minimum wage law at Disneyland.
The trouble for Disney began on January 1, 2019, when Anaheim voters approved a new minimum wage law for companies that benefited from tax rebate agreements with the city. Known as Measure L, the new law ordered a minimum wage of $15 an hour.
Sleeping Beauty Castle. Credit: Disney
Subsequently, however, Disney did not follow the law’s guidelines when negotiating pay raises with theme park unions.
The Lawsuit Was Filed in December 2019
Disneyland Cast Members then filed a class-action lawsuit against the company in December 2019, alleging that Disney had disregarded the new Anaheim minimum wage.
For their part, Disney argued that it had never had a “tax rebate” agreement with Anaheim and thus wasn’t subject to the terms of the law. According to the LA Times, the company had asked the Anaheim City Council to void a 45-year gate tax moratorium and a $267 million bed tax agreement for a planned hotel before the election that ratified the new minimum wage was held.
City of Anaheim. Photo: Wikipedia
Initially, Orange County Superior Court Judge William Claster sided with Disney.
Reversal
Upon appeal, however, the 4th District Court of Appeal reversed the decision, ruling that Disney and Anaheim had a tax rebate agreement found within a 1996 expansion deal.
The ruling was reversed upon appeal. Photo: Miriam-Webster
While Disney initially intended to appeal the decision to the California Supreme Court, the court refused to hear the case.
A Massive Payout
With the writing on the wall, Disney has now agreed to settle the class-action lawsuit for $233 million. The settlement will give affected Cast Members (nearly 50,000 of them) back pay with interest.
“What we believe is the largest wage and hour class settlement in California history will change lives for Disney families and their communities,” said the Disney employee’s attorney, Randy Renick.
Photo: cba.cj
In addition to the back pay owed, Disney agreed to pay interest, penalties, and other fees.
“We are pleased that this matter is nearing resolution,” said Suzi Brown, a Disneyland spokeswoman. “Currently, all cast members make at least the Measure L requirement of $19.90 per hour, and, in fact, 95% of them make more.”
