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Disney Employees Living Wage Class Action Lawsuit Overview:
- Who: Current and former Disneyland employees filed a class action lawsuit against Disneyland.
- Why: Workers allege Disneyland does not pay them a living wage as required by law since it is given tax breaks from the city of Anaheim.
- Where: The class action lawsuit is pending in California.
Disney underpays its California employees by failing to provide them with a living wage, a recently certified class action lawsuit alleges.
The Orange County Superior Court in July granted class-action status to a class action lawsuit filed in 2019 on behalf of more than 25,000 current and former Disneyland employees.
Disney Employees Say They Are Due Pay Bump
Workers allege they are entitled to higher pay since Disneyland is given tax breaks from the city of Anaheim.
Businesses that receive city subsidies are required under Measure L — voted into law in 2018 — to pay employees at least $15 an hour, a number set to increase to $18 by 2022, in addition to cost-of-living increases, reports SFGate.
Anaheim originally took out municipal bonds to pay for the construction of Disneyland’s Mickey and Friends garage, which opened in 2000, reports SFgate. The bonds are mostly being repaid by Disney in tax, along with hotel room taxes the city collects.
Workers argue the repayment counts as a subsidy since Disneyland profits off the garage, even though the city of Anaheim financed it.
Disneyland agreed in 2018 to raise its 10,000 union members’ pay to $15.45 by the year 2020, according to CNN Money, though it is unclear whether or not the company followed through on its promise.
Both the City of Anaheim and Disneyland disagree with the workers’ allegations that they are responsible for increases in what is deemed a living wage, reports SFGate.
The current minimum wage in California is $14 an hour.
Do you believe Disney pays its employees well enough? Let us know in the comments!
The plaintiffs are represented by Randy Renick of Hadsell Stormer Renick & Dai LLP.
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