Less than three months after an Orange County judge approved a record-setting $233 million settlement in the Disneyland minimum wage class action lawsuit, Cast Members have begun receiving their back pay.
Before we get into the latest news, let’s recap how we got here.
The initial class-action lawsuit was filed in December 2019 by Disneyland Cast Members who alleged that the company was violating Anaheim’s newly enacted minimum-wage law.
Measure L
The settlement stemmed from a new Anaheim law, called Measure L, which required any company receiving tax rebate agreements from the city to pay its workers at least $15 per hour.
Disney initially argued that it had no such “tax rebate” arrangements with Anaheim, but the 4th District Court of Appeal disagreed. The court determined that a 1996 expansion agreement between Disney and the city did, in fact, constitute a rebate.
The Settlement
With the writing on the wall, Disney quickly agreed to a $233 million settlement with affected Cast Members.
Breaking that figure down, $179.6 million is allocated for back pay and retirement contributions, $17.5 million will go to the California Labor and Workforce Development Agency, and $35 million to attorney fees.
“This is the end of the lawsuit,” Richard McCracken, lead attorney representing Disneyland Cast Members, told the OC Register. “We believe this is the largest wage class action settlement in California history.”
The Settlement Checks Are Being Dispersed
Following the settlement, over 51,000 Disneyland Cast Members were eligible for back pay with 10% interest.
Additionally, employees will receive the 401(k) contributions they missed out on and any other penalties.
Those checks have already been issued to eligible plaintiffs…