Disney has agreed to pay $43.25 million to settle a class action lawsuit involving approximately 9,000 female employees in California who accused the company of salary discrimination.

As part of the settlement, Disney will engage experts to examine “significant pay disparities” utilizing a model commissioned by the attorneys representing the female employees, according to their statement.

The lawsuit, initiated in 2019, focused on allegations from female employees who have worked at Disney since 2015, claiming they received lower pay than their male colleagues for comparable roles. The suit was filed by LaRonda Rasmussen, a veteran product development manager at Walt Disney Studios, and Karen Moore, who has over 20 years of experience as a senior copyright administrator for Disney’s Hollywood Records. Disney had previously denied the claims of pay discrimination across various corporate divisions in the class action that sought up to $300 million.

The settlement was finalized in September, although the specifics of the agreement were not disclosed. On Monday, the plaintiffs’ attorneys filed for the court’s approval of the settlement. Los Angeles Superior Court Judge Elihu M. Berle is tentatively scheduled to review the agreement at a hearing on January 10.

A Disney spokesperson stated, “We have always been committed to fairly compensating our employees and have shown that commitment throughout this case, and we are pleased to have resolved this issue.”

Lori Andrus, the lead attorney for the plaintiffs, remarked that Disney “has committed to conducting annual pay equity reviews to further enhance pay equity.” She added, “I believe this will bolster the company and its reputation as a significant employer and contributor to California’s economy.”

Last year, the lengthy case overcame a significant obstacle when a judge certified a diverse group of employees spanning various sectors of the company, including movie production, record labels, theme parks, and home distribution, among others like broadcast and research and development. This is believed to be one of the largest classes to file under an equal pay act claim, consisting of women employed by Disney from April 2015 until three months prior to the trial, which was set to begin in May, below the vice president level.

Christine Webber, an attorney for the plaintiffs and partner at Cohen Milstein, stated, “This settlement would not have been achievable without these brave women. Thanks to them, future female employees can anticipate equitable treatment at Disney.” She expressed hope that the court would promptly approve the settlement, allowing these diligent women to proceed with the assurance that best practices will be implemented without the burden of ongoing litigation.

 

Person: LaRonda Rasmussen, Karen Moore, Elihu M. Berle, Lori Andrus, Christine Webber
Company Names: Disney, Walt Disney Studios, Disney’s Hollywood Records, Cohen Milstein
Titles: None

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