Disney has agreed to pay $233 million to settle a class-action lawsuit filed by Disneyland workers, who claimed they were underpaid under an Anaheim law.
Under a measure approved in 2018 by voters in the Orange County city, Anaheim resort employers receiving city tax subsidies are required to pay employees at least $17 per hour. Disneyland workers claimed their employers had refused to meet that legal obligation. A handful of workers making between $12 and $14.25 filed the initial suit, contending that Disney had received some $200 million in tax rebates in order to secure the construction of California Adventure, parking garages and other facilities.
As the case wound its way through the courts, Disney maintained it shouldn’t be subject to the requirements of the Anaheim law, arguing its language referred to tax rebates. An appeals court ultimately sided with the workers.
Randy Renick, an attorney representing the plaintiffs, said the case is believed to be the biggest class-action settlement over wages and hours ever agreed to in the state of California. It will “change lives for Disney families and their communities,” he told the LA Times.
“We are pleased that this matter is nearing resolution,” Disneyland spokesperson Suzi Brown said in a statement provided to Deadline. “Currently, all cast members make at least the Measure L requirement of $19.90 per hour, and, in fact, 95% of them make more.”
In October 2023, workers who were not at or above the Measure L rate were upped to $19.40 per hour. An agreement last summer between Disneyland and Master Services, the park’s biggest union, representing more than 13,000 employees, set a minimum hourly rate of $24.