Walt Disney has settled a high-profile lawsuit for $43.3 million, addressing claims that female employees in California were consistently paid less than their male counterparts.
The case, filed in 2019 by LaRonda Rasmussen, alleged a gender pay gap resulting in female employees collectively earning $150 million less over an eight-year period. Rasmussen’s claim stemmed from discovering that six male colleagues with the same job title earned more than she did, including one with less experience who was paid $20,000 more annually.
Court Ruling and Settlement Terms
The lawsuit grew to include 9,000 current and former female Disney employees. Despite Disney’s efforts to prevent the lawsuit from proceeding as a class action, a judge allowed it to move forward in December 2022. The settlement not only includes the financial agreement but also outlines steps to address pay equity.
Disney has committed to retaining a labour economist for three years to analyse pay equity among full-time, non-union employees in California below the vice-president level. This analysis will identify and address pay disparities, reinforcing the company’s stated commitment to fair pay practices.
Lori Andrus, a partner at Andrus Anderson, one of the law firms representing the plaintiffs, praised the plaintiffs for taking a stand. “I strongly commend Ms Rasmussen and the women who brought this discrimination suit against Disney, one of the largest entertainment companies in the world. They risked their careers to raise pay disparity at Disney,” she said.
The case was bolstered by an analysis of Disney’s human resources data conducted by David Neumark, a labour economist and professor at the University of California, Irvine. Neumark’s research, covering April 2015 to December 2022, found that female employees at Disney earned approximately 2 percent less than their male counterparts in similar roles.
Commenting the news of the settlement, Andrus said, “I am pleased to share news of our settlement of this pay equity class action, after five years of work. Our plaintiffs, led by LaRonda Rasmussen, have been amazing throughout. Selfless and brave. In addition to the monetary relief, Disney has committed to conducting pay equity reviews to further promote pay equity.”