Walt Disney Company Settle Class Action Wage and Hour Claim for $233 Million

Employment Law

Kathleen Grace, et al. v. The Walt Disney Company, et al. (Orange County Super Ct. No. 30-2019-01116850-CU-OE-CXC): On December 24, 2024, Walt Disney Company agreed to the terms of a $233 million settlement to resolve a class action lawsuit brought forth by hospitality workers employed in the Anaheim and Disneyland Resort areas. Plaintiffs claimed that defendants violated a Living Wage Ordinance (LWO) passed in 2018 which applied to businesses that benefited from a “City Subsidy”. The underlying matter was originally dismissed by way of summary judgment on behalf of the defendants, but plaintiffs appealed thereafter. The Court of Appeal reversed the underlying judgment and ultimately found that Disney’s various contracts with Anaheim to revitalize the resort properties the right to a “rebate” within the construct of the LWO, which constituted as a “City Subsidy”. The parties ultimately agreed to resolve the matter for $233 million.