Orange County Will “Almost Certainly” Approve Disney’s $233 Million Settlement in Minimum Wage Case
Just over one month after Disney agreed to settle a massive minimum wage class action lawsuit, an Orange County judge will now sign off on the agreement.
As a quick recap, Disneyland Cast Members filed the class action lawsuit in December 2019, accusing the company of circumventing Anaheim’s new minimum wage law.
Disneyland Park. Photo: The Walt Disney Company.
Known as Measure L, the new law mandated that companies that benefited from tax rebate agreements with the city pay their employees a minimum wage of $15 an hour.
Disney’s Defense Was Rejected
While Disney initially argued that it had no “tax rebate” agreements with Anaheim, the 4th District Court of Appeal ruled against them. In its decision, the court determined that the 1996 expansion deal between Disney and the city included a rebate.
After Disney’s attempt to appeal the case to the California Supreme Court was rejected, the writing was on the wall.
The Walt Disney Company. Photo: Disney
The company subsequently agreed to settle the lawsuit for $233 million. The settlement will give nearly 50,000 current and former Cast Members back pay with interest.
The Settlement Will Be Approved in February
According to Randy Renick, one of the plaintiffs’ attorneys, Orange County Superior Court Judge William D. Claster will “almost certainly” approve the settlement on February 28.
Photo: Miriam-Webster
The judge “had some very minor questions to clear up before approving it,” Renick said.
Now that the two sides have reached an agreement, approval of the settlement seems like a mere formality. Five years after the lawsuit was initially filed, Disney can finally move forward.
