[US] $233m settlement reached in Disney minimum wage lawsuit

Disney is set to pay $233 million to settle a class action representing more than 50,000 underpaid Disneyland workers, following a five-year legal battle, The Hollywood Reporter reports.

In a statement, Randy Renick - a lawyer representing the employees - said, “This settlement will put significant awards in the hands of those workers and positively impact their lives as well as the health and wellbeing of their families.”

In 2018, Anaheim voters passed Measure L which forced hospitality businesses in receipt of tax rebates to increase the minimum wage to $15 an hour and tie further bumps to inflation. This reportedly sparked the lawsuit. 

Following approval of the initiative, Disney moved to end $267 million in subsidies for a luxury hotel to evade the mandate. Additionally, Josh D’Amaro - chairman of Disney Parks - called to end a decades-long moratorium on entertainment taxes.

Workers filed a proposed class action in Orange County Superior Court, highlighting a series of deals with Anaheim in 1996 under which more than $200 million in tax rebates were granted to Disney to help finance the construction of California Adventure and a parking garage. 

According to the complaint, the five workers who filed the lawsuit earned between $12 to $14.25 per hour working at the resort.

Disney reportedly asserted that it is not covered by Measure L and argued that the word “rebate” as defined in the ordinance is limited to the return of taxes paid by residents. The court sided with Disney finding that it doesn’t enjoy a city subsidy.

However, in 2023 a state appeals court reversed the decision. A three-judge panel of California’s 4th District Court of Appeal, citing employee protections in the measure, concluded that the 1996 agreements constitute subsidies since they afford Disney the “right to receive a return of taxes.” The state Supreme Court declined to review the case.

Disney and lawyers representing the workers moved for court approval of the deal on December 13. A judge will consider the agreement at a hearing next month.

In a statement, a Disneyland spokesperson said that all cast members “make at least the Measure L requirement of $19.90 per hour, and, in fact, 95% of them make more.” They added, “We are pleased that this matter is nearing resolution.”

The settlement comes in the wake of Disney agreeing to pay $43.25 million last month to settle a class action from around 9,000 female employees in California who accused the company of pay discrimination. As part of the deal, Disney will reportedly retain experts to address “significant pay differences” using a model commissioned by lawyers representing the employees.

Source: The Hollywood Reporter

(Link and quotes via original reporting)

Disney is set to pay $233 million to settle a class action representing more than 50,000 underpaid Disneyland workers, following a five-year legal battle, The Hollywood Reporter reports.

In a statement, Randy Renick - a lawyer representing the employees - said, “This settlement will put significant awards in the hands of those workers and positively impact their lives as well as the health and wellbeing of their families.”

In 2018, Anaheim voters passed Measure L which forced hospitality businesses in receipt of tax rebates to increase the minimum wage to $15 an hour and tie further bumps to inflation. This reportedly sparked the lawsuit. 

Following approval of the initiative, Disney moved to end $267 million in subsidies for a luxury hotel to evade the mandate. Additionally, Josh D’Amaro - chairman of Disney Parks - called to end a decades-long moratorium on entertainment taxes.

Workers filed a proposed class action in Orange County Superior Court, highlighting a series of deals with Anaheim in 1996 under which more than $200 million in tax rebates were granted to Disney to help finance the construction of California Adventure and a parking garage. 

According to the complaint, the five workers who filed the lawsuit earned between $12 to $14.25 per hour working at the resort.

Disney reportedly asserted that it is not covered by Measure L and argued that the word “rebate” as defined in the ordinance is limited to the return of taxes paid by residents. The court sided with Disney finding that it doesn’t enjoy a city subsidy.

However, in 2023 a state appeals court reversed the decision. A three-judge panel of California’s 4th District Court of Appeal, citing employee protections in the measure, concluded that the 1996 agreements constitute subsidies since they afford Disney the “right to receive a return of taxes.” The state Supreme Court declined to review the case.

Disney and lawyers representing the workers moved for court approval of the deal on December 13. A judge will consider the agreement at a hearing next month.

In a statement, a Disneyland spokesperson said that all cast members “make at least the Measure L requirement of $19.90 per hour, and, in fact, 95% of them make more.” They added, “We are pleased that this matter is nearing resolution.”

The settlement comes in the wake of Disney agreeing to pay $43.25 million last month to settle a class action from around 9,000 female employees in California who accused the company of pay discrimination. As part of the deal, Disney will reportedly retain experts to address “significant pay differences” using a model commissioned by lawyers representing the employees.

Source: The Hollywood Reporter

(Link and quotes via original reporting)