OC Judge May Approve Disney $233M Settlement For Class-Action Lawsuit

ANAHEIM, CA — An Orange County Superior Court judge on Friday may approve a $233 million settlement with Disney in a class action suit stemming from a dispute over Anaheim's minimum wage law.

Judge William D. Claster is being asked to sign off on the settlement agreement reached last month, according to reports. The agreement also seeks attorneys' fees up to nearly $35 million.

The class in the lawsuit includes about 51,000 workers, and the settlement is meant to compensate them for lost wages, services charges and retirement contributions during the salary dispute.

"The proposed settlement additionally includes resolution of approximately $5.7 million in underpaid service charges throughout the class period," the attorneys said in court papers.

In 2023, appellate court justices ruled in favor of the union workers who sued and the state Supreme Court did not take up an appeal.

Disney has been complying with the minimum wage since the Supreme Court's denial of an appeal.

"The settlement is an excellent result for the class, and avoids a trial and likely appeals," the attorneys said in court papers.

The lawsuit was filed Dec. 6, 2019. The suit alleged the company violated the city's minimum wage ordinance of at least $15-$17 an hour adopted in 2018.

Disney officials argued the ordinance did not apply for its workers and won a motion to dump the case Nov. 1. The plaintiffs appealed and won a reversal of the lower court ruling July 13, 2023.

The appellate justices ruled that because Disney receives subsidies from the city it has to comply with the minimum wage.

According to Disneyland officials, many skilled hourly roles exceed a starting rate of $25 an hour.

“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,” Disneyland spokesperson Suzi Brown said.

City News Service contributed to this report.