For many Disney enthusiasts, landing a job at the Mouse House feels like a dream come true. Whether it’s working in the theme parks to create magical experiences for guests or strolling the studio lot in Burbank, California, walking the very halls once frequented by Walt Disney himself, it’s hard to imagine a better job.
However, for many Disney employees, the reality was far from the dream they had envisioned, particularly when the company failed to pay them the wages they were owed.
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The Background of Measure L and the Lawsuit
The roots of this legal battle date back to 2019 when Anaheim, California—home to Disneyland Resort—passed Measure L. This local ballot measure required companies receiving tax rebates from the city to pay their employees a minimum of $15 per hour. Measure L was designed to ensure that large employers like Disney provided a livable wage for their workers.
However, despite losing their appeal to block the measure in court, Disney reportedly did not comply with the law.
This led Disneyland Resort cast members to take legal action. They filed a class-action lawsuit seeking back pay, interest, and penalties, arguing that Disney had withheld the wages they were rightfully owed under Measure L. The lawsuit highlighted that Disney had failed to adjust its pay scale for thousands of employees, leaving them underpaid despite the legal mandate.
The Settlement and Its Impact
After years of legal battles, Disney has now agreed to settle the lawsuit for $233 million. Of this amount, $105 million will go directly toward back pay for nearly 50,000 affected employees. The remaining funds will cover interest and penalties, including:
- 10% interest on back wages and overtime pay
- 100% matching contributions to employees’ 401(k) accounts
- 10% interest on the missed 401(k) contributions
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The settlement also ensures that Cast Members will receive their full overtime payments owed from the period Measure L was enacted. For many employees, this compensation represents long-overdue justice after years of financial struggle.
Why Cast Members Fought Back
The lawsuit’s origins lie in years of mounting frustrations among Cast Members. For decades, Disney has been criticized for failing to provide liveable wages for its frontline employees. A 2018 survey by the Coalition of Resort Labor Unions found that over 75% of Disney workers struggled to afford basic living expenses. Some Cast Members even reported experiencing homelessness or living out of their cars due to the high cost of living in Anaheim and surrounding areas.
Adding to the controversy, Disney’s executive pay has often made headlines for its stark contrast to the wages of its employees. For example, former CEO Bob Iger’s multimillion-dollar compensation package became a focal point for critics who argued that Disney prioritized profits over its workers’ well-being.
The financial struggles of Cast Members also caught the attention of Abigail Disney, the grandniece of Walt Disney. In her 2022 documentary The American Dream and Other Fairy Tales, she highlighted the challenges faced by Disney employees and called for the company to fulfill its promise of treating workers with dignity and fairness.
A Broader Labor Movement
Disneyland Cast Members’ fight for fair wages is part of a larger labor movement within the company. In 2023, Disneyland Paris employees went on strike, demanding better pay and improved working conditions. Across Disney’s global operations, workers have increasingly pushed back against what they see as inadequate wages and unfair treatment.
While the $233 million settlement is a victory for Disneyland Resort workers, it also raises questions about whether systemic changes will follow. Will Disney take proactive steps to improve wages and working conditions, or will future lawsuits be necessary to hold the company accountable?
What’s Next for Disney and Its Cast Members?
This settlement comes as Anaheim prepares to raise the city’s minimum wage to $20.50 per hour, further emphasizing the importance of fair compensation in one of the most expensive regions in the country. For Disney, the payout serves as both a resolution and a reminder: the magic it creates for millions of guests relies on the hard work of its cast members, and their well-being should not be an afterthought.
For Cast Members, the settlement represents a hard-fought win, but also a call to remain vigilant. As one of the world’s most recognizable brands, Disney has a responsibility to set a standard for ethical treatment of its workforce. Whether the company rises to this challenge remains to be seen.
Do you think Disney isn’t treating its cast members well and underpaying them? Should Disney be punished further, instead of just settling for $233 million? Share your thoughts in the comments!
