Disney Dining Serving up the latest Disney Eats, Treats, News, and More!
The Walt Disney Company employs over 200,000 people, with nearly 55% of those being women. However, despite women making up the majority of the company’s workforce, they are underrepresented at the top of the pay scale. According to thousands of women, this disparity is not due to a lack of qualifications or merit, but because Disney, overall, pays women less than men in similar roles.
In December 2023, 9,000 employees were granted permission to file a class-action lawsuit against the company under California’s Equal Pay Act. The plaintiffs are seeking damages exceeding $300 million.
Credit: Disney
The lawsuit claims that female employees working in non-union positions below the vice president level since 2015 were subjected to pay disparities in numerous Disney units, including theme parks, film studios, and others.
Contrary to Disney’s assertions of an equitable pay structure, these allegations raise serious concerns about systemic gender bias within the organization, with representatives accusing Disney of “gaslighting” female employees regarding their pay and treatment.
Per a previous report from Variety:
“Disney has been gaslighting these women for four years,” she [plaintiff’s layer] said. “They love their jobs. They love the brand. But they want to be respected and treated the way they should be in the workplace.”
The class includes female Disney employees who have worked for the company in California since April 1, 2015, in a non-union position below the level of vice president, and who have been assigned to a job family and level. It covers employees from the Disneyland hotels and theme park, the cruise line, the Disney film and TV studios, ABC, Marvel, Lucasfilm, and other units. It does not include Pixar, ESPN, Hulu, Fox, or FX.
Credit: Disney
Related: Disney’s Most Iconic Treat Is At the Center of a Huge New Lawsuit
Throughout the proceedings, Disney’s legal team argued that the employee classifications were too varied to warrant a class action certification. They contended that disparities in pay could be attributed to several permissible factors, including experience and performance, rather than gender.
However, the plaintiffs’ attorneys presented evidence demonstrating that starting salaries for women were approximately 2% lower than those for men, strengthening their case against the company.
Credit: Disney
As the trial date in 2024 approached, both parties engaged in extensive negotiations, which ultimately resulted in a tentative settlement agreement.
While specific terms of the settlement in the Disney Gender Pay Gap Lawsuit remain confidential, reports indicate that the financial compensation could be substantial, potentially amounting to eight figures. Estimates suggested that the damages sought could exceed $300 million, although the final payout may not reach this threshold.
Both sides have informed the court of an agreement to resolve the case. Terms of the deal weren’t disclosed.
“The Parties have reached a tentative agreement” and are “currently working on finalizing the terms in the form of a written settlement agreement,” lawyers for the plaintiffs and Disney wrote in a joint statement to the court filed in September. They’re expected to file a motion for approval of the settlement by Friday.
Credit: The Walt Disney Company
Related: Disney’s Legal Troubles Grow with Employee Data Breach Lawsuit
Pending the settlement’s finalization, a motion for preliminary approval is expected to be filed with the court. The hearing to approve the settlement agreement is tentatively scheduled for January 10, 2025. This could potentially bring closure to a high-profile case that has highlighted systemic issues of gender discrimination in the workplace.
While the company has expressed disappointment with the lawsuit’s rulings, executives have remained largely silent on the specifics of the settlement. It remains to be seen whether Disney will reform its pay practices or institute measures to enhance transparency and accountability in its compensation strategies to prevent future disparities.
Do you think Disney did the right thing by settling out of court? How can the company address these pay gap issues? Let us know your thoughts in the comments!
