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Disney has agreed to pay out $233 million to Disneyland resort workers to settle a class action lawsuit alleging that the entertainment juggernaut was not adhering to a voter-approved minimum wage law in Anaheim.
It’s the largest wage theft settlement in California history, according to attorneys representing resort workers.
The law approved by Anaheim voters in 2018 – dubbed Measure L – requires that all businesses in the city receiving a subsidy from city hall pay their workers a minimum wage of at least $20 an hour as of 2022.
It also instituted an additional 2% raise each year for workers in perpetuity.
To read the language of the law, click here.
“All current and former Disneyland employees who were paid less than Measure L requires will receive 100% of the underpayment plus interest and penalties,” said Richard McCracken, the lawyer who represented the class action workers, in a Monday news release.
McCracken did not respond to a request for comment Monday.
Suzi Brown, a spokesperson for Disneyland, said their workers are already receiving the higher minimum wage.
“We are pleased that this matter is nearing resolution. Currently, all cast members make at least the Measure L requirement of $19.90 per hour, and in fact, 95% of them make more,” Brown said in a statement.
The settlement comes on the heels of Disney reaching an agreement earlier this year with a coalition of four unions representing 14,000 workers for a new contract that raised the minimum wage to $24 an hour.
[Read: Comparing Disneyland Labor Battles; Did Unions Cut a Good Deal in Anaheim?]
Courts Rule Disney Receives City-Subsidies
Disney argued they had not received any subsidies from the city, but a panel of appellate court judges said differently last year, pointing to a 1996 agreement between Disney and the city for bonds that would pay for improvements in the resort area.
That deal opened the door for Disney to receive a refund on their taxes on years when the city could already meet its obligations to pay down the bond.
“We find the Reimbursement Agreement gives Disney the right to receive a rebate—or a return—of transient occupancy taxes (paid by hotel guests), sales taxes (paid by consumers), and property taxes (paid by Disney), in any rebound years when the City’s tax revenues are sufficient to meet its bond obligations. Consequently, Disney receives a “City Subsidy” within the meaning of the [living wage ordinance] and it is therefore obligated to pay its employees the designated minimum wages,” reads the ruling.
[Read: Disneyland Workers Could Get Nearly $20 an Hour Following Appeals Court Ruling]
That ruling also opened the door for thousands of park employees to receive back pay the company had denied them since 2018.
The settlement is the outcome of a class action lawsuit filed by Disneyland Resort workers in 2019 alleging the Disney company was failing to follow Measure L – a law city officials said at the time said the billion dollar conglomerate would be exempt from.
[Read: Are Anaheim Taxpayers Subsidizing Disneyland? Class Action Lawsuit May Find Out]
Disney routinely funds city council campaigns, most recently spending nearly $1 million backing three candidates in last month’s election.
Each of those candidates easily won their council races.
Outside investigators – hired on the heels of a sweeping corruption probe – also found Disneyland resort interests hold outsized influence on city hall.
[Read: Anaheim’s Own Look at City Hall Finds Disneyland Resort Businesses Improperly Steer Policymaking]
Disney executives asked city officials to cancel city subsidies ahead of the November 2018 election including the development of a 700 bed luxury hotel.
Resort interests also spent heavily against Measure L.
In the end, 54% of Anaheim voters approved the minimum wage law in the 2018 November election.
Noah Biesiada is a Voice of OC reporter and corps member with Report for America, a GroundTruth initiative. Contact him at nbiesiada@voiceofoc.org.
Hosam Elattar is a Voice of OC reporter and corps member with Report for America, a GroundTruth initiative. Contact him at helattar@voiceofoc.org or on Twitter @ElattarHosam.
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