The Walt Disney Company just lost a California lawsuit that may cost the company billions of dollars in wages to Disneyland Resort Cast Members.

Disney has been swamped with issues from all sides in recent years, from the ongoing feud with Florida Governor Ron DeSantis over the Reedy Creek Improvement District, Walt Disney World, and the First Amendment to the increasingly violent Cast Member strike the Disneyland Resort Paris to CEO Bob Iger’s recent controversial comments about expectations of a fair wage by WGA and SAG members.
There could not be a worse time for the Walt Disney Company to lose a lawsuit, in other words.
Related: Disney Ignores Protestors, Hires New Staff
California Has Ruled Against Disneyland Resort
A California appellate court has ruled against the Walt Disney Company (per The Los Angeles Times), judging that the House of Mouse illegally went against a living-wage law passed in 2018 and has thus been underpaying its Cast Member staff for years.

The living-wage law (referred to as Measure L) orders resort companies in Anaheim to pay a certain minimum wage to workers if said company has tax debate agreements with the Californian cities.
This court decision could cause the minimum wage for Cast Member staff at the Disneyland Resort to rise as high as $20 per hour; considering Disney employs nearly 40,000 people at Disneyland alone, this could be huge numbers.
Disney Claimed to Be Exempt in Lawsuit
When the Disney lawsuit was first filed (representing over 25,000 Cast Members), the company’s lawyers claimed that Disneyland Resort received no subsidies or rebates from Anaheim and thus wasn’t subject to the law.

However, the California 4th District Court of Appeal said otherwise, citing a specific 1996 agreement in which Anaheim agreed to reimburse Disney if it was required to cover bond payments. Over the years, Disney has received numerous tax breaks from Anaheim; given that the company is the single largest employer in Orange County, there is a certain logic to this.
The Average Cast Member Wage Will Rise
All this means, unless the decision is overturned, Cast Member wages will significantly rise, just as the Walt Disney Company under CEO Bob Iger is doing everything in its power to cut costs

Sarah Grossman-Swenson, the attorney who represented the Cast Member group in the Disney lawsuit said:
We are pleased the court focused on the economic reality of Disney’s agreements with Anaheim and concluded that Disney is obligated to comply with the living wage law… The court’s decision will have a real impact on thousands of Disney employees who work so hard but struggle to provide for their families.
Related: Disney Gender Wars Revealed in Massive Wage Disparity Lawsuit
Disney Will Likely Appeal the Lawsuit Decision
Given Disney’s army of lawyers, the House of Mouse will likely not take this defeat lying down and appeal to the California Supreme Court. As of press time, the company has no official statement on the court ruling and how raising Cast Member wages to nearly $20 an hour could affect the Disneyland Resort.
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