Disney has reached a settlement in a lawsuit involving gender pay discrimination, agreeing to pay $43.3 million to resolve the case. The lawsuit, which was filed by a group of female employees, alleged that women were being paid less than men for similar work at the company’s Burbank location. While Disney did not admit fault as part of the settlement, the company stated that it has always been committed to paying employees fairly.
As part of the settlement, Disney will establish a fund to compensate the plaintiffs and will also provide training to executives overseeing job organization. Additionally, an outside labor economist will conduct a pay equity analysis of certain positions for the next three years. The lawsuit, which began in 2019 with two women in Southern California, eventually grew to include nine plaintiffs who claimed they were being significantly underpaid compared to their male counterparts.
The settlement, if approved by Judge Elihu M. Berle, will benefit over 14,000 women who were employed by Disney in California between April 1, 2015, and December 28, 2024, below the level of Vice President in a salaried, full-time, non-union position. The class excludes employees from ESPN, Hulu, Pixar, and former 21st Century Fox units, among others. In addition to compensating class members, the settlement proceeds will cover administrative costs and attorneys’ fees, with none of the funds reverting back to Disney.
The plaintiffs’ attorneys argued that gender discrimination was ingrained in the company’s pay practices, with women often being hired at lower salaries than their male counterparts. This initial pay disparity continued as women advanced within the company, leading to ongoing underpayment. The lawsuit was initially brought by San Francisco attorney Lori Andrus, with two additional law firms joining the case to represent the plaintiffs.
The settlement follows a mediation process in July between the plaintiffs’ attorneys and Disney, resulting in the $43.3 million agreement. The plaintiffs’ attorneys emphasized that the settlement would provide both monetary compensation for the claims and non-monetary relief for current and future employees, avoiding the risks associated with prolonged litigation. The settlement is considered non-reversionary, ensuring that all funds will go to the class members and related costs.
Overall, the settlement marks a significant step towards addressing gender pay disparities and promoting fair compensation practices within the entertainment industry. By acknowledging and rectifying past issues, Disney is taking a proactive stance on pay equity and demonstrating a commitment to treating all employees fairly and equally.