Disney Loses Major Lawsuit: Judge Awards Class Action Largest Wage Theft Settlement in California History

A judge in Orange County has approved a record-breaking settlement in California, awarding a significant payout to over ten thousand Disneyland employees. This resolves a lawsuit against Disney stemming from their failure to follow Anaheim’s law requiring a living wage for workers.

The Case Behind the Settlement

This legal dispute started with Measure L, a law passed by Anaheim voters in 2018 that aimed to ensure a living wage. The law required hotels and other hospitality businesses in the Anaheim Resort District-specifically those receiving financial help from the city-to pay their workers at least $15 an hour, starting January 1, 2019, with the wage increasing each year.

Disney first claimed it didn’t have to follow Measure L, arguing it hadn’t received the types of financial benefits that would activate the law. A lower court initially agreed with Disney. However, the California Court of Appeal reversed that decision, finding that Disney’s agreements with the city regarding bonds and taxes actually qualified as those benefits under the law.

I was really following the legal battle between Disney and its workers, and it seemed like it was finally over when the California Supreme Court decided not to get involved any further. That basically forced Disney to reach a settlement, and honestly, it was a huge win for the roughly 50,000 current and former Disneyland employees! The agreement totaled a massive $233 million, which is incredible.

What Workers Will Receive

This agreement resolves unpaid amounts dating back to January 2019. Specifically, it covers:

Back wages for hourly shortfalls under Measure L.
Overtime and penalties owed from improperly calculated pay.
401(k) matching contributions that should have been made on higher wages, plus interest.

I’ve been following the news, and outlets like the *Los Angeles Times*, *Voice of OC*, and *WDWNT* are reporting that the potential settlement payout is looking like around $3,000 per worker, considering there are about 50,000 people involved. But it’s not a flat amount for everyone. How much each person actually gets will depend on their specific situation – things like how many hours they worked, their job, and any overtime or benefits they’re entitled to. Some of us might get a bit more, and others might receive a little less, but it’s a good starting point to understand what’s possible.

Disney’s Shifting Wages

Disney has already begun increasing pay for many of its employees in Anaheim. Thanks to new union agreements, the minimum wage for thousands of workers is now $24 an hour, and it’s set to rise to $26 in the coming years.

The company is now highlighting its new agreements with labor unions, but critics note that workers were denied legally required pay raises for years. These losses will only be addressed now, following extensive legal battles.

A Landmark Disney Lawsuit

This lawsuit is about more than just the financial aspect. Labor lawyers argue that the result will establish the legal validity of local laws requiring a living wage. Companies receiving benefits from cities shouldn’t be able to ignore standards set by voters.

The recent lawsuit against Disney highlights that wage theft isn’t always a simple case of stealing money. It can also involve things like not paying the required hourly rate, keeping tips that should go to workers, or incorrectly calculating overtime. When these issues affect a large workforce – tens of thousands of employees in this instance – the total amount of money involved can be incredibly large, even record-breaking.

The Bigger Picture

The current labor dispute highlights increasing conflict between workers and companies in California. While Disneyland is famous for being a cheerful place, recent surveys show its employees have been facing tough financial struggles. A 2018 study revealed that most Disneyland workers had difficulty affording necessities like housing and food.

The $233 million payout is damaging to Disney beyond just its finances; it’s also hurting the company’s reputation. Disney was already dealing with falling attendance at its theme parks, stock market issues, and disagreements over social and political topics. This situation adds to those challenges as the company tries to regain the trust of both its employees and the public.

Final Thoughts

While the agreement reached with Disneyland is a win for its workers, it also brings up concerns about why Disney delayed paying them what was due. After almost seven years, thousands of Disneyland employees, known as cast members, are finally receiving what voters in Anaheim asked for a long time ago.

As a movie fan, I think this Disney lawsuit in California is a really important moment for workers’ rights. It’s huge that a company as powerful as Disney was actually held accountable and had to pay up after breaking the law. It feels like a real turning point.

2025-09-17 22:20