A U.S. judge has approved Walt Disney's $233 million settlement with more than 50,000 Disneyland employees, who claim the entertainment giant denied them a living wage under a new local ordinance.
The class-action settlement, one of the largest in California's history, won final approval on Tuesday at the Orange County Superior Court. Presiding Judge William Claster described it as 'fair, reasonable, adequate, and consistent with public policy'.
According to court documents, nearly $180 million will go to class members, $17.5 million will be paid as civil penalties to the California Labor and Workforce Development Agency, and $35 million to the employees' lawyers. The remaining sum will cover the costs.
Richard McCracken, the lead attorney representing the employees, said the class members will be paid an average of $3,000 each. "Have you ever heard of a class action settlement like that?" he asked. "It's usually a coupon to buy an ice cream."
The lawsuit began in 2019 after Disney claimed it was exempt from a minimum wage law passed by voters a year earlier in Anaheim, where the Disneyland theme park is located.
Known as Measure L, the law required businesses in the city's resort district that received tax subsidies to pay their workers at least $15 an hour with gradual increases in subsequent years.
Employees backed by several Disney-based labour unions filed suit in 2019. A judge sided with Disney in 2021, a decision the unions appealed. In July 2023, a three-judge panel for California's Fourth Appellate District disagreed with the lower court.
Disney claims it has already taken steps to pay its workers higher wages.
A Disney spokesperson said nearly 96% of the company's employees, which it refers to as cast members, now earn more than $22 an hour, above the current $20.42 minimum under Measure L.
California's minimum wage workers currently earn $16.50 an hour.
"Disney cares deeply about our cast members," the spokesperson said on Wednesday. "We are proud to already offer some of the most competitive wages and comprehensive employee benefits in our industry."