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Disney agrees to $43.25M settlement over women earning less than men for a decade

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Published  November 27, 2024 10:36am PST
Disney
FOX 11

Disney reaches settlement over women's pay lawsuit

Disney has tentatively agreed to pay $43.25 million to settle a lawsuit alleging that female employees earned less money than their male colleagues for nearly 10 years.

The Brief

    • Disney agreed to a $43.25M settlement over alleged gender-based pay gaps, where male employees allegedly made more than their female colleagues for nearly 10 years.
    • Up to 14,000 women may receive payments averaging $1,800 to $3,000.
    • Disney plans pay equity reviews and staff training to address the issue.

LOS ANGELES - Disney has tentatively agreed to pay $43.25 million to settle a lawsuit alleging that female employees earned less money than their male colleagues for nearly 10 years.

If approved by the court, the settlement would offer financial compensation to up to 14,000 women who have worked for the company since April 2015.

The class action suit, initiated by Disney workers LaRonda Rasmussen and Karen Moore in April 2019, brought forward allegations of gender-based wage discrimination within the company's payroll practices. According to documents filed with the Los Angeles Superior Court, this agreement could mark the culmination of a long-standing legal battle highlighting the wage gap between male and female employees at Disney.

As outlined in the settlement proposal, affected female employees stand to receive payments averaging approximately $3,000 each, with net awards after legal costs estimated at $1,800. However, the sum varies per claimant, with the highest projected net award being roughly $15,000 and the smallest at $200.

The settlement also includes provisions for Disney to implement structural changes, including the employment of an external labor economist to review pay equity within the company over the next three years. Moreover, a psychologist will be brought in to train Disney's compensation staff in best practices for aligning job positions with external market rates.

Disney's legal representatives had previously expressed a vehement denial of wage disparity allegations, asserting a commitment to defend against the claims rigorously. Regardless, the potential settlement suggests a shift towards resolving these significant claims.

A court hearing concerning the preliminary approval of the settlement is scheduled for January 10 before Judge Elihu Berle. A favorable ruling would not only close a chapter on the lawsuit but also initiate a new phase of policy and practice for Disney in addressing and rectifying gender pay inequality.

CNS contributed to this report.