Disney has reached a proposed settlement of $43.25 million to resolve a class action lawsuit filed by female employees in California who alleged gender pay disparities. The lawsuit, which claims that women were paid less than their male counterparts despite having similar experience, would provide compensation to up to 14,000 current and former female workers at Disney and its subsidiaries, dating back to April 1, 2015, if approved by the Los Angeles Superior Court.
The settlement is significantly lower than the $300 million Disney could have faced if the case had gone to trial, which was set for May. The plaintiffs, represented by Cohen Milstein, Andrus Anderson, and Goldstein Borgen law firms, are seeking preliminary court approval for the settlement.
A Disney spokesperson expressed the company’s satisfaction with the resolution, stating, “We have always been committed to paying our employees fairly and have demonstrated that commitment throughout this case.”
The settlement excludes employees from ESPN, Hulu, Pixar, and former Fox subsidiaries, such as FX and National Geographic, from receiving any compensation.
As part of the settlement, Disney has agreed to retain a third-party industrial consultant to train employees on best practices to ensure fair pay in line with external market data. Additionally, a labor economist will be appointed for three years to analyze pay equity for all non-union, full-time employees in California, excluding those in vice president-level roles. The economist will also investigate and correct any identified pay discrepancies.
The class action was first initiated in 2019 by LaRonda Rasmussen, who claimed that Disney had been paying female workers less than their male colleagues for comparable work.
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