Disney Agrees To $43 Million Settlement In Women’s Pay Discrimination Lawsuit

The Walt Disney Company has reached a million settlement in a class-action lawsuit alleging that female employees in California earned million less than their male counterparts over an eight-year period, according to the plaintiffs’ legal team.

As part of the agreement, Disney will retain a labor economist for the next three years to monitor and assess pay equity among full-time, non-union employees in California below the vice president level. The economist will identify and address any pay disparities that arise, ensuring ongoing efforts to promote fair compensation, the plaintiffs’ attorneys confirmed.

The lawsuit was initiated in 2019 by LaRonda Rasmussen, who discovered that six male colleagues with the same job title were earning significantly more than she was—one of whom, despite having less experience, made more annually. Over time, nearly 9,000 current and former female employees joined the lawsuit.

Although Disney attempted to block the case from proceeding as a class action, a judge ruled in December that it could move forward, noted Andrus Anderson LLP, one of the firms representing the plaintiffs.

Lori Andrus, a partner at the firm, praised Rasmussen and the other women involved, commending their bravery in challenging pay inequity at one of the world’s most prominent entertainment companies.

While Disney has denied the allegations of systemic pay discrimination, the lawsuit was supported by a study conducted by David Neumark, a labor economist and professor at the University of California, Irvine. Neumark’s analysis of Disney’s human resources data from April 2015 to December 2022 revealed that female employees earned approximately 2% less than their male counterparts in similar roles.

The settlement, which still requires court approval, underscores the ongoing struggle for pay equity in corporate America.

This case serves as a powerful reminder of the importance of equitable compensation practices. For employers, it highlights the legal and ethical responsibility to ensure fair pay for all employees. For workers, it demonstrates that collective action can lead to meaningful change.

As Disney commits to evaluating and addressing pay disparities, the settlement sets a precedent for transparency and fairness in employment practices. “The courage shown by LaRonda Rasmussen and the thousands of women who joined this case sends a clear message: no company, no matter how large, is above accountability,” Andrus stated.

By agreeing to this settlement and implementing monitoring measures, Disney has taken a significant step toward addressing pay inequality, reinforcing the importance of fairness as a cornerstone of corporate policy.