Disney Accused Of STEALING $233 Million From Workers

Disney’s “Happiest Place on Earth” faces a $233 million reckoning for alleged wage theft at Disneyland.

At a Glance

  • Disney agrees to a $233 million settlement in a class-action lawsuit over minimum wage violations at Disneyland
  • The settlement covers back pay with interest for over 50,000 current and former employees
  • This is considered the largest wage and hour class settlement in California history
  • The dispute began in 2018 after a survey revealed Disney workers struggled to meet basic expenses
  • A California state judge will review the settlement on January 17

Disney’s $233 Million Wake-Up Call

The Walt Disney Co. has agreed to pay $233 million to settle a class-action lawsuit filed by Disneyland workers over minimum wage violations. This settlement, which covers back pay with interest for over 50,000 current and former employees, exposes the dark underbelly of the entertainment giant’s labor practices. The settlement stems from Disney’s alleged failure to comply with Anaheim, California’s Measure L, a local ordinance requiring a minimum wage of $19.90 per hour for businesses receiving city subsidies.

The magnitude of this settlement cannot be overstated. Randy Renick, one of the attorneys representing the workers, declared, “What we believe is the largest wage and hour class settlement in California history will change lives for Disney families and their communities.” This statement underscores the far-reaching impact of Disney’s alleged wage theft on thousands of hardworking Americans.

The Magic Kingdom’s Tarnished Crown

The roots of this dispute trace back to February 2018, when a survey revealed that Disney workers were struggling to meet basic expenses. This revelation sparked outrage and led to the passage of Measure L in Anaheim later that year. The measure mandates a minimum wage of at least $20 an hour for businesses receiving city subsidies, with a 2% annual raise. Despite benefiting from approximately $200 million in tax rebates for construction projects, Disney allegedly neglected to adjust wages according to the new law.

“All current and former Disneyland employees who were paid less than Measure L requires will receive 100% of the underpayment plus interest and penalties,” said attorney Richard McCracken.

Disney’s Defense and Future Commitments

Throughout the legal battle, Disney maintained that it did not receive city subsidies and was therefore not obligated to comply with Measure L. However, a court ruling identified a 1996 agreement as a subsidy, effectively dismantling Disney’s defense. In response to the settlement, a Disneyland spokeswoman stated, “We are pleased that this matter is nearing resolution. Currently, all cast members make at least the Measure L requirement of $19.90 per hour, and in fact, 95% of them make more.”

While Disney attempts to put a positive spin on the settlement, the fact remains that this lawsuit has exposed significant issues with the company’s wage practices. It’s worth noting that in July, Disney agreed to a new contract raising the minimum wage for unionized workers at Disneyland to $24 an hour. This move, likely influenced by the ongoing legal pressure, demonstrates that worker advocacy and legal action can drive positive change even in the face of corporate resistance.

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