Disney Will Pay $43 Million to Address Gender Pay Disparities
The Walt Disney Company is set to write a substantial $43.25 million check to settle accusations related to pay equity among its employees, particularly concerning female workers who have claimed they were paid less than their male counterparts for similar roles. This legal battle, which initially began back in 2019, has drawn considerable attention as it touches on broader societal issues concerning gender pay gaps and workplace equality.
The backdrop of this settlement involved allegations made by two Disney employees, LaRonda Rasmussen and Karen Moore, who raised concerns about wage disparities they experienced compared to their male colleagues. After their complaints, the case expanded to represent approximately 9,000 female employees who have worked for Disney since April 2015. These employees will now be eligible for compensation thanks to the settlement agreement, filed recently with the Los Angeles Superior Court.
Disney had been facing scrutiny not just for the allegations themselves, but also for its legal maneuvering during the proceedings. The company argued against the certification of the lawsuit as a class action, claiming each case required individual examination and was based on unique circumstances. The judge, Elihu M. Berle, disagreed, ruling last December to allow the class action to move forward under California’s strengthened Equal Pay Act.
Initially, the plaintiffs sought damages exceeding $150 million, anticipating the need for considerable compensation due to the widespread nature of the claims. The lawsuit highlighted Disney's policies related to salary offers, particularly the practice of basing new hires' salaries on their previous paychecks, which can disadvantage women trying to enter or advance within the company. A report commissioned by the plaintiffs indicated significant discrepancies, showing some women earning as much as 2% less than their male peers.
Disney's legal team put up a fierce challenge throughout the process—including accusations of the female staff’s claims being “highly individualized” and “not representative of the broader workforce.” This continued pushback culminated with the looming trial set for May 2025, which drove pressures to resolve the dispute.
Despite settling for significantly less than the $300 million the lawsuit could have potentially ballooned to if it had been taken to trial and certified as a class action, contract lawyers are hopeful this settlement will lead to improved practices within Disney. The deal includes plans for the company to engage outside consultants who intend to conduct annual reviews of pay equity, which is seen as a commitment to ensuring future fairness and transparency.
A representative from Disney stated, “We have always been committed to paying our employees fairly and have demonstrated this commitment throughout this case.” This statement reflects the company’s effort to turn the page on the controversy and restore trust among its workforce.
On the other side, Lori Andrus, lead attorney for the plaintiffs, expressed appreciation and encouragement for those women who took the brave step of bringing their experiences to court, recognizing the risks they took for their careers to shed light on these disparities. The attorney asserted, "I believe this settlement will help strengthen the company and its brand as a key employer and contributor to California’s economy. The path forward will involve greater scrutiny of pay practices—and hopefully, greater equity for employees within the vast organization of Disney.
Notably, this settlement excludes employees at Disney's subsidiaries such as Hulu, ESPN, and Pixar, focusing solely on the main studio and associated theme park employees. These developments indicate Disney’s continuing efforts to address workplace chicken, especially surrounding female employees, amid changing societal norms and increasing demands for corporate accountability.
Looking forward, the final approval of this settlement is anticipated to be granted by Judge Berle following hearings on January 10, 2025. While details of the settlement are still pending public review, those eligible for compensation will be notified of how they may opt out or object to the agreement as the court proceedings continue. For now, Disney is moving forward, with external consultants set to help craft more equitable pay structures as they seek to turn over a new leaf.
The settlement may serve as both a lesson and catalyst for change within one of the largest entertainment companies worldwide, showcasing the increasing emphasis on pay equality and the rights of female employees.
