An Orange County judge has approved a $233 million settlement in a wage theft lawsuit involving over 51,000 Disneyland employees. On Tuesday, Judge William Claster of the Orange County Superior Court gave final approval to the class-action lawsuit against Disneyland for failing to comply with Anaheim’s “living wage” ordinance. The lawsuit, initiated in 2019, accused Disney of not paying its employees according to the ordinance, which required businesses in Anaheim’s resort district receiving city tax subsidies to pay workers at least $15 an hour starting January 1, 2019, with annual increases through 2022.
Richard McCracken, the lead attorney for the employees, stated, “This is the end of the lawsuit. We believe this is the largest wage class action settlement in California history.” The settlement will see an estimated average payment of $3,000 to each current and former employee involved in the class action. According to Mercury News, $179.6 million will be allocated for back pay and retirement contributions, $17.5 million in penalties to the California Labor and Workforce Development Agency, and $35 million for attorney fees.
The lawsuit stemmed from Disney’s claim of exemption from Measure L, a 2018 voter-approved initiative. Initially, a judge sided with Disney, but the decision was overturned by California’s Fourth Appellate District in 2023. Disney has since increased wages, moving all cast members to $19.40 per hour in 2023 and agreeing to a minimum of $24 per hour for over 13,000 employees in 2024.
A Disney spokesperson expressed satisfaction that the matter is nearing resolution, stating the company “cares deeply about our cast members.” The final report on the amounts paid to class members is due by June 30, 2026.
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