Union members protest at the Disney Workers Rising Rally in Anaheim on July 17, 2024.
According to attorneys representing the workers, this is the largest wage theft settlement in California history.
The law in question, known as Measure L, was passed by Anaheim voters in 2018. It requires businesses receiving financial subsidies from the city to pay employees a minimum wage of at least $20 per hour starting in 2022, with an additional 2% wage increase each year indefinitely.
Richard McCracken, the lawyer representing the workers, stated that "all current and former Disneyland employees who were paid less than Measure L requires will receive 100% of the underpayment plus interest and penalties." McCracken further explained that if the settlement is approved by a judge, workers will receive back pay for the wages owed since the lawsuit began five years ago, plus 10% interest.
“This is the largest wage settlement in California history as far as we can tell,” McCracken said. He emphasized the financial impact for workers, noting that many could use the settlement to pay down debts, move into better housing, or support their children’s education and needs.
Disneyland spokesperson Suzi Brown countered that most workers are already earning at least $19.90 per hour, and 95% of workers earn more than the Measure L minimum. Despite this, the settlement still represents a significant financial windfall for thousands of workers.
This development follows an earlier agreement between Disney and a coalition of four unions representing 14,000 workers that raised the minimum wage to $24 an hour.
Legal Rulings and Subsidy History
Disney had argued that it didn’t receive subsidies from the city, but appellate judges ruled last year that a 1996 agreement between Disney and Anaheim qualifies as a subsidy under the law. This agreement allowed Disney to receive tax rebates during years when the city's tax revenues were sufficient to meet bond obligations related to resort area improvements.
The court found that this "Reimbursement Agreement" qualified Disney to receive tax rebates such as transient occupancy taxes, sales taxes, and property taxes—categorizing these as city subsidies. As a result, Disney was obligated under Measure L to adhere to the designated minimum wage.
The lawsuit originally began in 2019, with workers alleging Disney failed to comply with Measure L despite the city asserting at the time that Disney would be exempt from the law.
This settlement also highlights ongoing questions about Disney's influence in Anaheim. Disney has spent heavily to support city council candidates—most recently investing nearly $1 million in the last election—and external investigations have suggested Disney’s interests wield significant influence over local policymaking.
Context and Impacts
The settlement resolves a contentious legal battle that began amid discussions about city subsidies, labor practices, and Measure L’s minimum wage goals. This outcome marks a major financial win for Disneyland workers and signals the continuing challenges of aligning corporate subsidies with fair labor practices.
0 Comments