Disneyland Forced to Increase Wages for Thousands of Workers in Landmark Legal Battle
Disneyland Resort in California is facing a significant setback as the state’s Supreme Court refuses to hear an appeal from Disney regarding a wage law that applies to its lowest-paid theme park workers. This decision paves the way for Disneyland to raise wages for a large number of its employees.
The legal dispute between Disneyland and its workers began in 2018 when voters passed Measure L, a law mandating a $15 minimum wage for companies in Anaheim’s resort area with tax rebate agreements. This measure was put on the ballot thanks to a petition drive led by a coalition of Disney unions. However, Disneyland believed the law wouldn’t apply to them after the cancellation of certain agreements.
In December 2019, a class-action lawsuit representing 25,000 theme park workers was filed against Disney, disputing their compliance with the law. Initially, an Orange County Superior Court judge ruled in favor of Disney. However, this decision was reversed by a three-judge panel in the state’s 4th District Court of Appeal.
Disney subsequently filed an appeal with the state’s Supreme Court, arguing that the appellate court had redefined the concept of tax rebates, potentially impacting future public-private partnerships. This week’s decision by the Supreme Court marks the end of Disney’s legal fight, as they are now required to comply with the law.
The exact number of workers affected by the implementation of the wage law and the total amount of back pay owed remains unknown. Under the law, the pay scale is set to rise to slightly below $20 an hour next year, adjusted for inflation. This increase, along with the back pay owed, is considered a significant win for Disney workers, who have argued that they were not paid a living wage for almost five years.
Sarah Grossman-Swenson, an attorney representing Disney workers, emphasized the importance of the raises and back pay for the affected employees, stating that it can make a substantial difference in their lives. Both Disney and the city of Anaheim, where Disneyland is located, have acknowledged the court’s decision and expressed their intention to comply.
The outcome of this legal battle has implications beyond Disneyland, as it sets a precedent for other companies in Anaheim’s resort area with tax rebate agreements. It also highlights the broader issue of fair wages and the struggle faced by low-paid employees in the hospitality industry.
In conclusion, Disneyland’s failure to overturn the wage law in court means the company must now boost wages for thousands of its workers. This decision serves as a victory for the employees, who have long fought for better pay, and emphasizes the importance of fair compensation in the workforce.
