Disney’s magical facade crumbles as it agrees to pay a staggering $233 million to settle wage theft allegations at the “Happiest Place on Earth.”
At a Glance
- Disney settles $233 million class-action lawsuit over wage violations at Disneyland
- Over 50,000 current and former employees to receive back pay with interest
- Largest wage and hour class settlement in California history
- Settlement covers violations of Anaheim’s $15-an-hour minimum wage law from 2019
- Disney’s influence in Anaheim politics exposed amid corruption probe
The House of Mouse Caught in a Wage Trap
In a stunning turn of events, the Walt Disney Company has agreed to fork over $233 million to settle a class-action lawsuit filed by Disneyland workers. This isn’t just pocket change for the entertainment giant; it’s the largest wage and hour class settlement in California history. The lawsuit alleged that Disney failed to comply with Anaheim’s minimum wage law, Measure L, which required a hefty $19.90 per hour for businesses receiving city subsidies.
The settlement covers back pay from January 1, 2019, when the California city of Anaheim’s $15-an-hour minimum wage law took effect. Over 50,000 current and former employees of Disney’s Anaheim theme parks will receive compensation, exposing the scale of Disney’s alleged wage violations.
Disney to pay $233M to settle ‘wage theft’ suit from Disneyland workers https://t.co/wJVz1icJAH pic.twitter.com/7PkY7FAuE2
— NY Post Business (@nypostbiz) December 16, 2024
Disney’s Political Influence Unmasked
The lawsuit has pulled back the curtain on Disney’s significant influence in Anaheim politics. The company has been funding city council campaigns and opposing measures like Measure L, which aimed to ensure fair wages for workers. The settlement comes on the heels of a corruption probe that revealed Disneyland’s undue influence on city hall decisions. It’s a clear example of corporate overreach and the need for stricter oversight of big businesses in local politics.
While Disney claims that 95% of its workers already earn more than the Measure L requirement, the settlement tells a different story. The company had argued it didn’t receive city subsidies, but a court ruling identified a 1996 agreement as a subsidy, obligating Disney to comply with Measure L. This demonstrates how corporations often try to sidestep their responsibilities, relying on legal technicalities to avoid paying fair wages.
The Road to Fair Wages
The dispute began in February 2018 after a survey revealed Disney workers were struggling to meet basic expenses. Initially, some workers were earning between $12 and $14.25 per hour, far below the living wage for one of the most expensive areas in the country. The class-action lawsuit was filed in December 2019 after Disney allegedly failed to adjust wages according to the new law.
In a positive development, Disney agreed to a new contract in July, raising the minimum wage for unionized workers at Disneyland to $24 an hour. As of October 2023, workers not meeting the Measure L rate were increased to $19.40 per hour. While these are steps in the right direction, it’s crucial to remember that they came only after intense legal pressure and public scrutiny.
