Disneyland Will Pay $233 Million in California’s Largest-Ever Wage Theft Case

The Walt Disney Co. has agreed to pay out $233 million in a settlement related to a wage theft class-action lawsuit against Disneyland. Originally initiated over five years ago, a complaint was filed against the company for allegedly ignoring the minimum wage law in Anaheim, California.

Under the agreement, the entertainment behemoth will pay back wages to over 50,000 current and former employees of Disneyland. The payments will also include interest starting from Jan. 1, 2019, which is the day Anaheim’s minimum wage law went into effect.

“What we believe is the largest wage and hour class settlement in California history will change lives for Disney families and their communities,” said Randy Renick, an attorney representing the Disneyland workers, per the Los Angeles Times.

The settlement agreement still needs to be reviewed by an Orange County judge. After which, workers will find out how much money they will receive.

Disneyland Allegedly Ignored Labor Laws

In February 2018, the Coalition of Resort Labor Unions published a survey named “Working for the Mouse.” The study found nearly three out of four Disney employees did not make enough to cover even their basic expenses. Around the same time, Anaheim legislators had proposed a “living wage” initiative named Measure L, which was ultimately approved and required the resort to pay a minimum of $15 per hour.

Yet, Disney purportedly failed to raise pay according to the Anaheim legislation. Representing more than 30,000 employees at the time, a class-action lawsuit was filed in December 2019. Disney claimed it wasn’t subject to the law as it only applied to companies with a “tax rebate” agreement with Anaheim.

After years of back and forth in various courts, Disney lost the wage law case. In the meantime, the required minimum wage in Anaheim slowly increased to $19.90 an hour, with another increase coming next year.

“We are pleased that this matter is nearing resolution,” said Disneyland spokeswoman Suzi Brown. “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 a separate labor lawsuit, Disney is being accused of relocating California employees to a Florida location under false pretenses. Allegedly, after 250 employees made the move, Disney canceled a special project that the employees were assigned to. Two of the employees in the suit claim their jobs were threatened if they did not relocate to Florida, and the project cancellation caused significant hardship for them and other co-workers.