In a landmark resolution, Walt Disney Co. has agreed to pay $233 million to settle a wage theft class-action lawsuit filed by Disneyland workers, marking California's largest settlement of wage theft.
The agreement, pending approval from Orange County Superior Court Judge William Claster on January 17, will benefit over 50,000 current and former Disney employees who claimed the company failed to comply with Anaheim's minimum wage law.
The dispute originated in 2018 when the Coalition of Resort Labor Unions published the "Working for the Mouse" survey, revealing that nearly 75% of Disney workers struggled to cover basic living expenses. This led to the passage of Measure L, requiring companies with tax agreements in the Anaheim Resort area to pay workers at least $15 per hour starting January 2019.
When Disney did not adjust wages accordingly, workers filed a class-action lawsuit in December 2019. The company contested its obligation under the law, arguing it had terminated its tax agreements with Anaheim. However, an appeals court found that a 1996 Disney expansion deal included an embedded tax rebate agreement, ultimately leading to Disney's legal defeat when the California Supreme Court declined to hear the case.
The settlement includes approximately $105 million in back pay with interest, covering the period from January 2019 until Disney adjusted wages following the court decision last year. Once approved, affected workers will receive individual notices detailing their settlement amounts.
This resolution represents a major victory for theme park workers and sets a precedent for wage compliance in California's entertainment industry.