Disney to Pay MILLIONS In Massive Wage Theft Lawsuit

For many Disney lovers, being able to work for the Mouse House is a dream come true. Whether you work in the theme parks and help make magic for guests, or get to experience the studio lot in Burbank, California, and walk the halls Walt Disney once traveled down, there seems like no better job in the world.

Unfortunately, for a lot of Disney employees, the harsh reality was nowhere close to the dream job they envisioned. Especially when Disney refused to pay them the money they were owed.

A group of people smiling and posing together in an outdoor setting, with a mix of casual and themed clothing. The background shows a building with decorative elements reminiscent of Bob Iger's visionary style. The atmosphere is cheerful and friendly. — Credit: Disney Parks

In 2019, voters in Anaheim, California—where the Disneyland Resort is located—passed a ballot measure that required companies to pay their employees at least $15 per hour since the company received tax rebates from the city.

Disney fought the ballot measure, Measure L, but ultimately lost in the appeals court. However, according to cast members, even though Disney lost the fight, they never paid Disneyland Resort cast members what they were owed.

Those cast members ended up suing Disney for the money they were owed, plus interest. And now, just weeks before Anaheim is set to raise the minimum wage to $20.50 per hour, Disney has agreed to settle for a historic amount of money.

The bright, sunny weather enhances the vibrant colors of the scene as the castle towers in the background at this Disney Park. — Credit: Disney

According to the agreement, Disney will pay $105 million in back pay, and the rest of the $128 million will be interest and penalties. The settlement will affect nearly 50,000 employees who work at what is called “The Happiest Place on Earth.”

Here are some more details about the settlement.

Affected cast members will receive 100% of their back wages, including overtime payments
They will also receive 10% interest on their back wages and overtime pay
Disney will also match 100% of the 401(k) contributions that were supposed to be made since Measure L passed
Disney will pay 10% interest on those 401(k) contributions

A family of four, consisting of two adults and two children, poses for a photo in front of a castle at a themed amusement park. The woman wears Minnie Mouse ears with a bow, and they all smile happily while hugging each other. — Credit: Disney

For years, Disney has been accused of not paying its cast members fair, liveable wages, while its executives — like CEO Bob Iger — receive millions of dollars every year. In fact, back in 2018, the Coalition of Resort Labor Unions released a survey that revealed more than three-quarters of Disney cast members said they were not paid enough to afford basic expenses.

Many cast members admitted to experiencing food insecurity, and some even said they wound up homeless and had to live in their cars because they could not afford rent in Anaheim and the surrounding areas, since they are all relatively expensive.

A young girl in a blue princess dress and tiara smiles while sitting in a salon chair. Beside her, an adult dressed as a fairy tale character, with a name tag, smiles back at her. The background features enchanting decor. — Credit: Disney

Disneyland cast members are not the only cast members to have to fight the company for fair wages.

In the summer of 2023, cast members at Disneyland Paris went on strike and even staged protests in the theme parks. Like their U.S. counterparts, Paris cast members were fighting for better wages, better working conditions, and improved aspects of the time off requests and strike systems.

Disney employees have been fighting the company for better wages for so long that it even caught the attention of Walt Disney’s grandniece, Abigail Disney. In 2022, Ms. Disney released a new documentary, The American Dream and Other Fairy Tales, which detailed the daily struggles of cast members and the promises unfulfilled by Disney.

Do you think Disney isn’t treating its cast members well and underpaying them? Should Disney be punished further, instead of just settling for $233 million? Share your thoughts in the comments!