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Walt Disney has agreed to pay $43.3million to resolve a gender pay discrimination lawsuit brought by female employees in California.
The settlement comes after years of legal proceedings alleging systemic pay inequities at one of the iconic entertainment giant.
The case, initially filed in 2019 by former Disney employee LaRonda Rasmussen, accused the company of underpaying women compared to their male counterparts. Rasmussen claimed that men in identical roles, including one with significantly less experience, earned up to $20,000 more annually. Over time, the class-action lawsuit grew to include approximately 9,000 current and former female employees across Disney’s operations in California.
In addition to the financial settlement, Disney has committed to a series of measures aimed at addressing the alleged pay disparities. Over the next three years, the company will retain an independent labor economist to review pay equity among full-time, non-union employees below the vice president level. Any discrepancies identified will be addressed as part of this agreement, according to the legal teams representing the plaintiffs.
Disney pay gap
The lawsuit cited data spanning from April 2015 to December 2022, analyzed by labor economist and University of California Irvine professor David Neumark, which found that women at Disney earned roughly two per cent less than men in comparable roles. Despite these findings, Disney denied any wrongdoing throughout the litigation.
“We have always been committed to paying our employees fairly and have demonstrated that commitment throughout this case,” a Disney spokesperson said. “We are pleased to have resolved this matter.”
The company did attempt to block the class-action lawsuit but the motion was dismissed by a California judge in December 2022, allowing the case to move forward. Legal experts noted that the ruling significantly strengthened the plaintiffs’ position.
Lori Andrus, an attorney with Andrus Anderson, one of three firms representing the plaintiffs, praised the courage of those who brought the case against Disney. “These women risked their careers to challenge one of the world’s largest entertainment companies over pay disparity,” she said.
Hollywood pay scrutiny
The settlement agreement, which still requires court approval, is seen as a milestone in the push for corporate pay equity. It shows increasing scrutiny on Hollywood giants regarding workplace fairness and transparency, particularly as broader societal conversations around gender and pay equity continue.
The lawsuit and settlement raise questions about whether other entertainment companies may face similar challenges in addressing historical pay inequities.
