Walt Disney settled a high profile lawsuit for $43.3 Million, which addressed claims that women employees in California are consistently paid less than male counterparts.
LaRonda Ramussen filed the case in 2019. She alleged that a pay gap between men and women resulted in female employees earning collectively $150 million less in an eight-year time period. Rasmussen made her claim after discovering that six male co-workers with the same title were paid more than her, including one who had less experience and was paid $20,000 annually more.
Court Decisions and Settlement Terms
The suit grew to include more than 9,000 female Disney employees, both current and former. Disney tried to stop the class action lawsuit, but a judge in December 2022 allowed it to proceed. The settlement includes not only the financial agreement, but also steps to address pay equality.
Disney has agreed to retain a labour economist in California for a period of three years, to analyze pay equity among non-union full-time employees below the level of vice president. This analysis will help identify pay disparities and provide solutions, reinforcing Disney’s commitment to fair compensation practices.
Lori Andrus praised plaintiffs’ courage. She is a partner in Andrus Anderson. “I commend Ms Rasmussen, and the women who filed this discrimination lawsuit against Disney, the largest entertainment company in the world. She said that the women risked their career to bring attention to Disney’s pay disparity.
David Neumark, an economist and professor from the University of California Irvine, conducted an analysis of Disney’s human resource data. Neumark’s study, which covered April 2015 through December 2022 found that Disney employees in similar roles earned about 2 percent less.
Andrus commented on the settlement: “I’m happy to announce the settlement of our pay equity class-action lawsuit after five years of hard work. LaRonda, our plaintiff, has been incredible throughout. Selfless and courageous. Disney has also committed to conduct pay equity reviews in order to promote pay equity.”
