Some posts may contain affiliate links which means our team could earn money if you purchase products from our site.
Federal judge approves Disney’s $233 million wage theft settlement
An Orange County judge has approved a $233 million settlement in a wage theft lawsuit filed by more than 51,000 Disneyland employees. The decision, made on Tuesday, September 16, brings an end to a six-year legal dispute regarding employee pay at the Anaheim theme park.
The OC Register reports that Judge William Claster of the Orange County Superior Court gave final approval to the class-action lawsuit against Disneyland. The lawsuit was based on the theme park’s failure to pay employees in compliance with Anaheim’s “living wage” ordinance.
Related – Disney Settles Lawsuit with Gina Carano Paving the Way for Potential Future Collaboration
“This is the end of the lawsuit,” said Richard McCracken, the lead attorney for the employees. “We believe this is the largest wage class action settlement in California history.”
Final reports on the payments to each class member are due by June 30, 2026. The employees are represented by lawyers from McCracken, Stemerman & Holsberry and Hadsell, Stormer Renick & Dai.
According to McCracken, the average payment for each employee is estimated to be around $3,000. He added that this amount is highly unusual for a class-action lawsuit, saying, “It’s usually a coupon to buy an ice cream.”
A Disney spokesperson stated that the company “cares deeply about our cast members” and is “pleased that this matter is nearing resolution.”
The lawsuit began when Disney claimed it was exempt from Measure L, a “living wage” initiative that was approved by voters in 2018. The measure required any businesses in Anaheim’s resort district receiving city tax subsidies to pay employees at least $15 an hour starting January 1, 2019, with wages increasing annually until 2022.
In 2019, several unions representing Disneyland employees filed a lawsuit. Initially, a judge sided with Disney in 2021, but the unions appealed that decision. In July 2023, a three-judge panel for California’s Fourth Appellate District reversed the lower court’s ruling.
According to a recent court filing, the settlement breaks down like this: $179.6 million will be given to the employees in back pay and retirement contributions. Additionally, $17.5 million in penalties will be paid to the California Labor and Workforce Development Agency, while $35 million will cover attorney fees. The rest of the money will be used for administering the settlement.
Get all the best Disney News
and more, straight to your inbox!
We don't spam. Read our privacy policy for more info.
For the BEST in Disney, Universal, Dollywood, and SeaWorld Theme Park News, Entertainment, Merchandise & More follow us on, Facebook, Instagram, and Youtube. Don't forget to check out the Chip and Company Radio Network too!
Let our friends at Destinations to Travel help you book your next Disney Vacation. They are the preferred Travel Agency of Chip and Company and Disney Addicts, and who we use ourselves.
Click Here for your FREE No Obligation Quote.
