Disney agrees to pay former workers in historic wage theft settlement

In a significant legal decision, Walt Disney Co. agreed to a substantial settlement of $233 million in response to allegations of wage theft, stemming from a class-action lawsuit filed by current and former workers. This lawsuit was initiated five years ago, specifically in December 2019, when employees accused Disney of violating the Anaheim minimum wage law that was enacted on January 1, 2019. The law mandated a minimum wage of $15 per hour for businesses within the Anaheim Resort that had specific tax rebate agreements with the city. Disney contended that it was not subject to this law, claiming no such agreements existed. However, the company eventually reached a preliminary settlement, which will compensate around 25,000 affected employees for back pay owed since the law's inception. A significant portion of the settlement, about $105 million, pertains to back wages owed to these workers. The settlement highlights the long and contentious battle between Disney and its employees regarding fair wage practices and reflects broader issues surrounding labor rights in major corporations. Current estimates suggest that as of the settlement, all Disney cast members are compensated at least $19.90 per hour, with 95% earning more. Nonetheless, many workers had already left the company due to dissatisfaction with their wages prior to this settlement, which means they too will benefit financially upon approval of the arrangement by Orange County Superior Court Judge William Claster on January 17. Advocates for the workers view the settlement as a turning point in labor relations at Disney, emphasizing the importance of fair compensation practices and acknowledging the efforts made by workers and unions to fight for their rights. The outcome of this case is seen as potentially influential in shaping future labor relations at Disney and across the industry, setting a precedent for how labor disputes are handled in California. The story of the Coalition of Resort Labor Unions also plays a crucial role here, as they campaigned for living wage laws and supported the workers throughout this lengthy legal process. In the eyes of some critics, the settlement stands as a reminder of the disparities in compensation within corporations, especially when juxtaposed against high executive salaries like that of CEO Bob Iger, who reportedly earns over $31 million annually. It serves as an important case study on the balance of power between corporate entities and individual employees, spotlighting the long-lasting impact of wage laws and worker rights advocacy in the United States.