The Walt Disney Company has agreed to pay $43.3 million in settlement of a lawsuit involving 9,000 women.
Former and current employees both brought the case, alleging that they were paid lower than their male co-workers for nearly a decade.
LaRonda Rasmussen, who filed the lawsuit in 2019 after discovering that six men with the same job title earned a lot more money than her, reached a settlement agreement. One male colleague who had less experience than Rasmussen earned PS20,000 per year more.
A judge in December granted a class action status to a part of the Disney case despite Disney’s objections. The class action status allowed those named to represent other workers under California’s Equal Pay Act.
The settlement document states that more than 14,000 women may be eligible for a portion of the award.
In order to reach the agreement, the entertainment giant will hire a labour economist who will review the pay equity over a period of three years. This person will be evaluating the full-time non-union California employees below the Vice President level. Three law firms representing plaintiffs stated that the company was required to correct the pay disparities.
Disney accepted the settlement, but contested the accusations and did not admit to any fault.
A spokesperson stated: “We are happy to have resolved the matter.”
Lori Andrus said in a statement that she represented the women: “I commend Ms. Rasmussen, and the women who filed this discrimination lawsuit against Disney, which is one of the biggest entertainment companies on the planet. They risked careers to bring attention to the pay disparity at Disney.
Subscribe to our weekly HR news and guidance
Every Wednesday, receive the Personnel Today Direct newsletter.
Personnel Today: HR roles in hospitality, leisure and tourism
Browse HR jobs in the hospitality and leisure industry
