Court Grants Final Approval of Disney’s $233M Deal

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Disney's $233M Deal

A California state court has sealed the fate of one of the largest wage disputes in Disneyland’s history. On Tuesday, Orange County Superior Court Judge William D. Claster granted final approval of Disney’s $233M Deal with more than 51,000 Disneyland Resort employees who claimed the company sidestepped Anaheim’s minimum wage law.

The pact ends years of litigation and awards class attorneys nearly $35 million in fees while directing roughly $180 million straight into workers’ pockets.

Judge Claster praised the agreement, calling it “fair, reasonable and adequate,” noting that the lawyers for the employees conducted “meaningful discovery” and a “thorough factual and legal investigation.”

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Workers to Receive Full Back Pay Plus Interest

Under the settlement, the class—made up of current and former Disney workers at Anaheim theme parks and hotels—will recover 100% of their unpaid wages, plus 10% interest and penalties.

“This is an unusually strong result,” said Richard G. McCracken of McCracken Stemerman & Holsberry LLP, one of the attorneys for the workers. “Many employees will see thousands of dollars in back pay, a life-changing difference.”

The settlement stems from a December 2019 class action accusing Disney, along with contractors running food services and a Starbucks at the park, of violating Measure L, Anaheim’s 2018 “living wage” ordinance. The law required hospitality employers benefiting from city subsidies to pay at least $15 an hour starting January 2019, a figure that has since climbed to $20.42.