Disneyland Reaches $233 Million Settlement in Minimum Wage Lawsuit

Disneyland Reaches $233 Million Settlement in Minimum Wage Lawsuit

After a five-year legal battle, Disney has agreed to pay $233 million settlement for a class-action lawsuit filed by over 50,000 underpaid Disneyland workers.

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Attorney Randy Renick expressed satisfaction with the settlement, stating that it will provide substantial financial benefits to the affected workers and their families. The lawsuit was a direct result of Anaheim’s Measure L, which mandated a $15 minimum wage for businesses receiving tax breaks. In response, Disney took steps to avoid the mandate, including ending subsidies for a luxury hotel and advocating for the end of the entertainment tax moratorium.

A group of Disneyland workers filed a class-action lawsuit, alleging that Disney received over $200 million in tax breaks while underpaying its employees. The workers, who earned between $12 and $14.25 per hour, claim that Disney violated minimum wage laws.

Disney initially argued that it wasn’t subject to Measure L, a local ordinance mandating a $15 minimum wage for businesses receiving tax breaks. While a lower court initially sided with Disney, a state appeals court later ruled that Disney’s 1996 tax breaks constituted a subsidy, making the company eligible for the higher minimum wage. Following this ruling, Disney and worker representatives have reached a $233 million settlement.

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