The Walt Disney Company has reached a groundbreaking $233 million settlement to resolve a class-action lawsuit filed by Disneyland workers in Anaheim, California. The lawsuit alleged that Disney failed to comply with the city’s 2018 Measure L law, which mandated minimum wage requirements for employers benefiting from city tax subsidies.
The lawsuit was initiated by workers earning between $12 and $14.25 per hour, claiming Disney had received substantial tax rebates, estimated at $200 million, for constructing facilities like California Adventure and parking garages. Despite these subsidies, the workers alleged that their wages did not meet the mandated minimums.
After years of legal proceedings, including an appellate court ruling in favor of the workers, the settlement marks a significant victory for the affected employees. Attorney Randy Renick described the settlement as the largest wage and hour class-action resolution in California’s history.
Disneyland Class Action Settlement 2025
Measure L, approved by Anaheim voters in 2018, requires employers receiving city tax subsidies to pay workers a minimum wage. Initially set at $15 per hour in 2019, the wage increased incrementally and stood at $19.90 per hour in 2023. This law was a direct response to growing concerns about wage inequality in the tourism-driven economy of Anaheim.
- Eligibility: Applies to employers benefiting from city subsidies, including rebates, incentives, or financial agreements.
- Wage Increases: Scheduled annual increases adjusted for inflation.
- Scope: Primarily targets hospitality, entertainment, and resort industries, heavily influencing Disneyland and similar businesses.
Timeline of the Lawsuit
Filing and Initial Claims
The lawsuit began in 2019 when Disneyland workers accused the company of failing to meet Measure L requirements. Workers highlighted disparities between their pay and the city’s mandated minimum wage, arguing that Disney had violated its obligations under the law.
Legal Arguments
Disney initially contended that Measure L’s language did not explicitly apply to them, as the law referenced tax rebates. The company argued that its financial arrangements with the city did not fall under the law’s purview.
Appellate Court Decision
In a landmark decision, an appellate court sided with the workers, affirming that Disney’s tax benefits made it subject to Measure L. This ruling set the stage for the historic settlement.
Details of the Settlement
The $233 million settlement will benefit approximately 25,000 current and former Disneyland employees. This amount includes unpaid wages, interest, and other compensatory damages. The settlement is expected to have a transformative impact on the lives of many workers.
- Beneficiaries: Workers employed between 2018 and 2023 who were underpaid based on Measure L rates.
- Implementation: Payments will be distributed in early 2024 after court approval.
- Impact: Sets a precedent for future wage and hour disputes in California and beyond.
Disney’s Current Compliance with Measure L
Since October 2023, Disneyland has adjusted wages to comply with Measure L. All Disneyland employees now earn at least $19.90 per hour, with 95% earning more than this threshold. Additionally, a new agreement with Master Services, Disneyland’s largest union representing over 13,000 workers, established a minimum hourly wage of $24.
| Category | Hourly Wage |
|---|---|
| Minimum (as of 2023) | $19.90 |
| Master Services Agreement | $24 |
| Percentage of Workers Above Measure L Rate | 95% |
Broader Implications of the Settlement
The settlement represents a landmark moment in California’s labor rights landscape. Beyond the monetary compensation, it underscores the importance of corporate accountability in adhering to labor laws. For Disney, this resolution marks a turning point in its relationship with employees and its community.
- For Workers: Immediate financial relief and long-term wage benefits.
- For Employers: A cautionary example to comply with local labor laws to avoid costly legal disputes.
- For the Industry: Sets a new standard for wage and hour compliance in the hospitality sector.
Disney’s $233 million settlement is a pivotal moment in the ongoing fight for fair wages in the entertainment and hospitality industries. The resolution not only compensates workers but also reinforces the necessity of adhering to legal wage requirements. As Disneyland workers look to a brighter future, this case stands as a reminder of the power of collective action in achieving justice.