News Summary
An Orange County judge has approved a $233 million settlement for over 51,000 Disneyland employees, ending a six-year legal battle over alleged wage theft under the Anaheim ‘living wage’ ordinance. The settlement marks a significant victory for the employees, ensuring back pay and penalties will be paid and recognized as the largest wage class action settlement in California history. Disney’s commitment to its employees continues as they navigate the implications of labor relations following this landmark decision.
Santa Ana, CA – An Orange County judge has approved a historic $233 million settlement for over 51,000 Disneyland employees, resolving a six-year legal battle concerning alleged wage theft under the Anaheim “living wage” ordinance. Judge William Claster of the Orange County Superior Court granted final approval for this class-action lawsuit on September 16, 2023, marking a significant victory for the employees commonly referred to as “cast members” at Disneyland.
This settlement is believed to be the largest wage class action settlement in California history, according to attorney Richard McCracken, who represented the employees in the case. The lawsuit originated from Disney’s assertion that it was exempt from Measure L, a living wage initiative enacted by Anaheim voters in 2018 that mandates businesses in the resort district receiving city tax subsidies to provide a minimum wage of $15 per hour, starting January 1, 2019, with incremental increases for subsequent years.
Backed by various Disney-related unions, the employees filed this lawsuit in 2019 after Disney contended it was not subjected to the requirements of the ordinance. Although a judge initially sided with Disney in 2021, a three-judge appellate panel overturned that decision in July 2023, paving the way for the current settlement.
As part of the settlement, Disney will allocate approximately $179.6 million specifically for back pay and retirement contributions to the plaintiffs. Furthermore, the agreement includes $17.5 million in penalties that will be paid to the California Labor and Workforce Development Agency. Legal fees totaling $35 million are also included in the settlement, along with funds designated for administration costs. Current and former Disney employees are projected to receive an average settlement payment of about $3,000 each.
Disney has stated that nearly 96% of its cast members currently earn more than $22 per hour, claiming it has already taken significant steps to increase workers’ wages. The company expressed that it cares deeply about its employees and is pleased that the dispute is nearing resolution. A final report detailing the amounts paid to class members is expected to be submitted by June 30, 2026.
The origins of this case date back to a dialogue between Disney and Anaheim officials concerning tax incentives prior to the enactment of Measure L. Following previous announcements by Anaheim City Attorney Robert Fabela that Disney would not be bound by Measure L due to the cancellation of tax incentive deals, the legal dispute continued to question Fabela’s interpretation of a 1996 agreement that centered on tax subsidies related to infrastructure improvements for the resort.
Described as “absolutely historic” by attorney Randy Renick, the settlement not only marks a significant milestone for the workers involved but could also set a precedent for future wage theft cases and corporate accountability within the industry. The outcome highlights ongoing discussions and implications for labor relations in California and beyond.
Deeper Dive: News & Info About This Topic
HERE Resources
Disneyland Employees Reach Historic Settlement in Wage Theft Case
Major Settlement Reached in Orange County Baby Injury Case
Additional Resources
- Orange County Register
- Wikipedia: Settlement
- Los Angeles Times
- Google Search: Disney wage theft settlement
- Pasadena Star-News
- Google Scholar: California wage theft laws
- Newsweek
- Encyclopedia Britannica: 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.
