News Summary
A $233 million settlement was approved for Disneyland employees in a class-action wage theft lawsuit, resolving a six-year legal battle over pay discrepancies. This agreement, the largest of its kind in California, will benefit over 51,000 employees with an average payout of around $3,000. The lawsuit emerged after Disney asserted exemption from a living wage law, prompting employees to seek legal recourse. The judgment underscores a significant victory for labor rights and marks an important milestone in workers’ compensation discussions.
Orange County, California – A $233 million wage theft lawsuit settlement was approved on September 16, 2024, by Judge William Claster in Orange County Superior Court. This landmark decision resolves a class-action lawsuit involving over 51,000 Disneyland employees, commonly referred to as “cast members.” The settlement marks the end of a six-year legal battle regarding pay discrepancies in relation to Anaheim’s living wage ordinance.
According to Richard McCracken, the lead attorney for the employees, this settlement is recognized as the largest wage class-action settlement in California history. Judge Claster emphasized the conclusion of the lawsuit during the hearing. A comprehensive report detailing payment distributions to class members is required from the attorneys representing the employees by June 30, 2026. Current estimates suggest that the average payout for the current and former employees will be around $3,000 each.
A spokesperson for Disney noted that the company cares deeply about its cast members and expressed happiness that this matter is approaching resolution. The lawsuit originated after Disney claimed exemption from Measure L, a voter-approved living wage law mandating a minimum wage of $15 per hour starting January 1, 2019, with increments scheduled annually. Employees, along with support from various Disney-centric unions, initiated the lawsuit in 2019 after the company failed to comply with the ordinance.
Initially, a court ruling in 2021 sided with Disney, but the outcome shifted in July 2023 when a three-judge panel reversed that decision. By October 2023, Disney had updated wages for cast members who earned below the Measure L rate, raising their hourly pay to $19.40. Currently, nearly 96% of Disney’s cast members earn more than $22 per hour, surpassing the existing Measure L requirement of $20.42.
The settlement itself allocates $179.6 million to plaintiffs for back pay and retirement contributions, in addition to $17.5 million in penalties owed to the California Labor and Workforce Development Agency, and $35 million designated for attorney fees. The roots of this lawsuit trace back to discussions between Disney and Anaheim city officials prior to the approval of Measure L, where it was suggested that Disney was exempt from the new requirements due to canceled tax incentive deals.
Disney’s claim of exemption from Measure L was based on an older agreement from 1996 that the company argued excused it from the wage requirements of the ordinance. This legal challenge scrutinized the determination made by Anaheim City Attorney Robert Fabela regarding Disney’s tax agreements, opening discussions surrounding living wages for resort workers and their financial struggles.
The resolution of this lawsuit is viewed as a significant victory for the labor movement and represents a triumph for workers who have faced economic challenges while employed at Disneyland. As the settlement progresses, it remains to be seen how the final distribution of compensation affects the lives of the employees involved and influences future labor discussions within Disneyland and similar industries.
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Additional Resources
- KFI AM 640
- Mercury News
- Los Angeles Times
- Newsweek
- Wikipedia: Wage Theft
- Google Search: Disney Wage Theft Settlement
- Google Scholar: Disneyland Wage Theft
- Encyclopedia Britannica: Wage Theft
- Google News: Disney Wage Theft
Author: Anaheim Staff Writer
Anaheim Staff Writer The Anaheim Staff Writer represents the experienced team at HEREAnaheim.com, your go-to source for actionable local news and information in Anaheim, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as major conventions at the Anaheim Convention Center, including NAMM and VidCon, exciting games at Angel Stadium and Honda Center, and developments at Disneyland Resort Our coverage extends to key organizations like the Anaheim Chamber of Commerce and Visit Anaheim, plus leading businesses in hospitality, entertainment, and innovation that power the local economy As part of the broader HERE network, including HERECostaMesa.com, HEREHuntingtonBeach.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
