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Foreground Image Credit: Glennia, FlickrDisney is paying out over $40 million after settling a years-long class action lawsuit.
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Disney has agreed to pay $43.25 million as part of a class action lawsuit that alleged the company was paying women less than its male employees. According to Variety, the lawsuit accuses The Walt Disney Company of favoring men over women in terms of compensation. even if they both had the same work experience.
The plaintiff’s attorneys filed a motion to seek approval of the settlement. If the repetition is granted, thousands of women who have worked for Disney since 2015 will receive compensation for the disparity in wages.
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The lawsuit was initially filed in 2019, alleging that The Walt Disney Company had discriminatory policies regarding new hires. According to the suit, Disney would base a new hire’s salary on their pay at their previous place of work, which in turn meant less pay for women who were hired by Disney compared to men.
According to a study commissioned by the plaintiffs, one category of women was paid 0.58% less than their male counterparts. This rang true for other categories of employees, with some being paid 2% less. Disney has disputed these findings but agreed to use them as a basis for which to appropriate funds.
Attorneys can seek approval for up to one-third of the settlement amount, which is roughly $14.4 million. In addition, $1.8 million can be approved for litigation costs. Nine women were named in the lawsuit.
LaRonda Rasmussen, a financial analyst at Disney, first discovered the disparity between her and her male coworkers in 2017. Rasmussen complained and received a $25,000 raise, but according to the lawsuit, this new salary still was less than what her average male employee was earning.
“I strongly commend Ms. Rasmussen and the women who brought this discrimination suit against Disney, one of the largest entertainment companies in the world,” plaintiffs’ attorney Lori Andrus said in a statement. “They risked their careers to raise pay disparity at Disney.”
The suit expanded in 2023 after Judge Elihu Berle granted class status to 9,000 women who were suing under the California Equal Pay Act. This number represents women working in all parts of The Walt Disney Company, including at the theme parks, on cruise ships, and for the company’s various entertainment wings, such as Marvel Studios, Lucasfilm, ABC, and Pixar.
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Lawyers representing Disney argued it was impossible to accurately compare skill and experience levels across a wide range of jobs. Disney defended its pay practices in a statement, saying it is pleased to have resolved the case.
“We have always been committed to paying our employees fairly and have demonstrated that commitment throughout this case, and we are pleased to have resolved this matter,” a company spokesperson said.
Women who are part of the settlement class will receive notifications asking if they wish to opt out of the agreement. If they do nothing, they will receive payment.
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