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Credit: Inside The MagicThe Walt Disney Company employs more than 200,000 people, and nearly 55% of those employees are women. Unfortunately, despite the fact that women make up a majority of the company, they do not rank at the top of the pay scale. However, according to thousands of women, that is not because they do not deserve it — it is because Disney, as a whole, pays women less than the men who do the same job.
That is why, in December 2023, 9,000 employees were allowed to file a class-action complaint and sue the company under California’s Equal Pay Act. They were looking for damages totaling more than $300 million.
Related: Federal Lawsuit Filed Against Disney: Streaming Platforms at Risk
When the judge allowed the lawsuit to proceed, his decision was praised by the lawyer representing the women. She said that Disney has been “gaslighting” her clients for years.
An earlier report from Variety stated:
“Disney has been gaslighting these women for four years. They love their jobs. They love the brand. But they want to be respected and treated the way they should be in the workplace.”
The class includes female Disney employees who have worked for the company in California since April 1, 2015, in a non-union position below the level of vice president, and who have been assigned to a job family and level. It covers employees from the Disneyland hotels and theme park, the cruise line, the Disney film and TV studios, ABC, Marvel, Lucasfilm, and other units. It does not include Pixar, ESPN, Hulu, Fox, or FX.
Related: Disney Wins Property Lawsuit, Resulting in Nearly $100 Million Settlement Impacting Public Schools
Disney tried to argue that the case would be so large that it would be unmanageable. After the ruling, Disney’s legal representation said that the company was disappointed in the ruling and was considering all options.
Well, nearly one year later, it looks like Disney has chosen the settlement option.
According to reports, Disney and the plaintiffs have reached a mutual agreement to settle the lawsuit before it goes to court.
Both sides have informed the court of an agreement to resolve the case. Terms of the deal weren’t disclosed.
“The Parties have reached a tentative agreement” and are “currently working on finalizing the terms in the form of a written settlement agreement,” lawyers for the plaintiffs and Disney wrote in a joint statement to the court filed in September. They’re expected to file a motion for approval of the settlement by Friday.
THR further reports that documents have been released disputing Disney’s claim that it pays men and women equally throughout the company.
Discovery has unearthed documents challenging arguments from Disney that it equitably pays women and men. Nancy Dolan, manager of creative music marketing, was denied a promotion to director over the objections of her supervisor, president of music Mitchell Leib, who said in an email that she was “worth her weight in gold,” according to a collection of nearly 200 court records unsealed in the case. He urged higher-ups to reconsider the decision. In an email, vice president of compensation NaShawn Bacon in 2020 acknowledged a “pay equity nightmare.”
Neither side has commented on the settlement, and details have not been released. We do not know how much Disney has agreed to pay or how many employees will be receiving a check.
How do you think Disney should handle pay disparities within the company? Did they do the right thing by settling out of court? Share your thoughts in the comments!