Years after Disney was first accused of violating minimum wage laws at its California resort, the “happiest place on Earth” has agreed to settle a class-action lawsuit for $233 million. A lawyer representing Disneyland workers confirmed the settlement to Straight Arrow News.
Based on the law firm’s research, it’s believed to be the largest wage and hour class-action settlement in California history.
“For this to be the result, and all of the money to go back to the workers, and the interest on top, it doesn’t quite get better than this,” attorney Cornelia Dai told SAN. “Especially when you have a long fight like this, five years.”
Dai said the settlement will cover 100% of back pay, plus interest and penalties, owed to more than 50,000 Disney employees since 2019. If a judge approves the settlement next month, workers will then find out how much they get.
The five-year fight
Back in 2018, Anaheim voters approved Ballot Measure L, which specifically required employers in Disneyland and Anaheim resort zones that had tax rebate agreements with the city to pay a higher minimum wage. Starting in 2019, that was $15 an hour. It increased $1 every year to $18 an hour by 2022. From there, it started rising by the rate of inflation. In 2024, the rate is $19.90 an hour.
The ballot measure got a boost from this 2018 survey of Disneyland employees, “Working for the Mouse.”
The report said, “Disneyland employees report high instances of homelessness, food insecurity, ever-shifting work schedules, extra-long commutes, and low wages … Almost three-quarters (73%) say that they do not earn enough money to cover basic expenses every month.”
The ballot measure passed with 54% of the vote, but Disney’s lawyers were already on the case. Disneyland argued it didn’t fall under the “living-wage law” because the 1996 expansion deal it had with the city didn’t qualify as a tax rebate. The Anaheim city attorney agreed, but workers filed a class action lawsuit anyway.
Years into this legal battle, a judge also sided with Disney in 2021. But by 2023, the district court of appeal reversed the ruling, saying Disney did fall under the living-wage law and therefore was illegally evading it for years. The California Supreme Court declined to hear the case, effectively ending Disney’s fight.
Disneyland today
“Disney is meeting the Measure L hourly rates and going forward, they’re going to match the increase,” Dai said. “So this is going to change lives in a real way. And I’m not just saying those words. It’s really going to change the lives of the Disney employees and their families. So it’s a big deal. It’s a real big deal.”
“We are pleased that this matter is nearing resolution. Currently, all cast members make at least the Measure L requirement of $19.90 per hour, and, in fact, 95% of them make more,” Disneyland spokesperson Suzi Brown said in a statement to Straight Arrow News.
This summer, Disneyland staved off a strike by agreeing to a three-year contract with unionized workers that pays a $24 minimum wage for 2024.