Court Grants Final Approval of Disney’s $233M Deal
America ı By Rihem Akkouche
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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.”
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.
Legal Battles and Turning Points
Disney had long argued it was not bound by Measure L, but the tide shifted in July 2023 when a California appeals court ruled otherwise. The court said tax rebate agreements with the city meant Disney qualified under the ordinance.
When Disney appealed to the California Supreme Court, the justices declined to intervene, cementing the appellate ruling. That left only one question: the size of the remedy. Facing certain liability, Disney ultimately agreed in December to the $233 million settlement.
A Boost for Workers—and a Signal to Other Cities
McCracken emphasized that the ruling proves the power of litigation in enforcing worker protections. “Because coverage under the living wage law was established in court, employees secured every dollar owed to them. This case shows what local wage laws can achieve.”
Worker advocates hope the result sparks similar ordinances across California. “The increase in earnings will ripple outward,” McCracken added, “boosting not only individual families but also local economies.”
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