Los Angeles, CA – The Walt Disney Company will pay $43.3 million to settle a gender pay disparity lawsuit in California, addressing claims that it paid female employees significantly less than males over several years. This resolution follows allegations that women working for Disney in California were underpaid by a total of $230 million compared to their male colleagues during an eight-year period.
The lawsuit was initiated in 2019 by LaRonda Rasmussen after discovering a significant pay gap between her salary and that of male employees with the same job title. In one instance, it was revealed that a male counterpart with fewer years of experience was earning over $30,000 more annually than Rasmussen, according to her legal team.
Lori Andrus, a partner at Andrus Anderson, the law firm that represented the plaintiffs, praised the courage of Rasmussen and other women who joined the suit. “They risked their careers to challenge pay disparity at one of the world’s most prominent entertainment companies,” Andrus stated.
The legal action eventually drew support from approximately 9,000 current and former female employees of Disney. These women collectively claimed systemic wage disparities and supported their case with evidence, leading to a significant class-action lawsuit.
Despite initially contesting the allegations, Disney faced a judicial decision last December allowing the class action to proceed. The company has yet to comment publicly on the recent settlement agreement.
Supporting the plaintiffs’ claims, an analysis conducted by David Neumark, a professor of economics at the University of California, Irvine, indicated that female employees were paid about 2% less than their male counterparts. This study, which spanned from April 2015 to December 2022, utilized Disney’s human resources data to underscore the alleged pay inequity.
As part of the settlement, Disney has agreed to measures that aim to prevent future disparities. The entertainment giant will employ a labor economist for the next three years to audit and analyze pay equity among its full-time, non-union employees in California below the vice president level. This analysis is intended to identify and rectify any unjustified pay gaps.
The settlement, still pending judicial approval, was filed in a California state court and is seen as a pivotal moment for gender pay equity in the corporate sector.
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