Disney Settles 5-Year Lawsuit Over Minimum Wage Evasion for $233 Million

After five grueling years of courtroom drama worthy of a straight-to-streaming Disney sequel, the Mouse House has agreed to part with $233 million to settle claims that it shortchanged over 50,000 Disneyland workers.

The case, which accused Disney of ignoring Anaheim California's 2018 minimum wage law, now ends with a payout as magical as Cinderella’s fairy godmother - minus the fairy dust.

The drama began in 2018, when Anaheim voters passed Measure L, a law mandating that hospitality businesses receiving city subsidies raise their minimum wage to $15 an hour, with annual adjustments for inflation. In what can only be described as corporate parkour, Disney immediately axed $267 million in subsidies earmarked for a luxury hotel project - because nothing says “supporting the workforce” like dodging a pay raise.

The lawsuit’s origin story involved five Disneyland employees earning $12 to $14.25 an hour. They argued that Disney’s sweetheart deals with Anaheim, which totaled over $200 million in tax breaks, qualified as subsidies under Measure L.

Disney, however, countered that "rebate" only referred to the return of taxes paid by residents, not sweetheart deals for theme park moguls.

The courts initially sided with Disney, but a state appeals court reversed the decision in 2023, ruling that Disney’s arrangements did, in fact, constitute subsidies.

Disney spokespersons, while polishing their diamond and gold Mickey-shaped cufflinks, reassured the public that Disneyland employees are now paid at least $19.90 per hour - although 95% supposedly earn even more.

That’s certainly an upgrade from the $12 hourly wage reported in 2018, when a survey revealed that many Disneyland workers faced food insecurity and homelessness.

In July, Disney tried to mend fences - or, more accurately, monorails - by raising base pay to $24 an hour for 13,000 union members working attractions, custodial services, and merchandise.

Better late than never, but critics argue that even Mickey’s magical kingdom can’t sprinkle pixie dust over years of low wages and economic struggle.

This isn’t Disney’s first rodeo - or should we say, Small World-ride - with labor disputes. Just last month, the entertainment leviathan coughed up $43.25 million to settle claims from 9,000 female employees who accused the company of pay discrimination.

Under that deal, Disney promised to hire experts to investigate "significant pay differences," which is corporate-speak for "trying to avoid another multi-million-dollar headline."

Given this pattern, Disney might want to invite Minnie Mouse to the discussions, or maybe invest in a dedicated legal team - or a vault of gold deeper than Scrooge McDuck’s.

Whether this latest settlement signals a turning point for the company’s labor practices or just another round of damage control remains to be seen. Either way, it’s a clear reminder that not even the "suggested" happiest place on earth is immune to real-world realities.

For now, the $233 million settlement awaits judicial approval, with a hearing scheduled next month. Meanwhile, workers are left wondering whether this payout marks the beginning of meaningful change or just another chapter in Disney’s ongoing saga of corporate compromises and public relations spins.

If history is any guide, Disney will bounce back - after all, it’s survived public controversies, box office flops, and The Haunted Mansion remake. But for the workers who keep the magic alive, the hope is that this settlement brings more than just temporary relief - it could be the start of a fairytale ending that doesn’t require a fairy godmother to fix.

Measure L: Annaheim, California Law

Mark Derho is a seasoned expert in the Internet industry with over 25 years of experience in NYC's software development, digital marketing, and advertising sectors. A certified Google Partner, Mark specializes in content creation, AI chatbot development, open-source software, modern website design, and SEO/SEM marketing. He leads PR Website Agency and lives in Puerto Rico with his dog, Luno.