Disney Reaches $43 Million Settlement in Women's Pay Discrimination Lawsuit.
Walt Disney has reached an agreement to pay $43.3 million to resolve a lawsuit that claimed its female employees in California earned $150 million less than their male colleagues over an eight-year span, as stated by the plaintiffs' attorneys on Monday.
As part of the settlement, Disney will engage a labor economist for a three-year period to evaluate pay equity among full-time, non-union employees in California who are below the vice president level and to address any identified disparities, according to the three law firms representing the plaintiffs.
The lawsuit was initially filed by LaRonda Rasmussen in 2019 after she discovered that six male employees with the same job title were earning significantly more than she was, including one individual with fewer years of experience who earned $20,000 more annually.
Ultimately, approximately 9,000 current and former female employees of the company joined the lawsuit. Disney sought to prevent the class action from proceeding, but a judge ruled in December that it could move forward, as noted by Andrus Anderson, one of the law firms involved. Lori Andrus, a partner at Andrus Anderson, expressed strong support for Ms. Rasmussen and the women who initiated the discrimination lawsuit against Disney, highlighting their courage in addressing pay disparities within one of the largest entertainment companies globally.
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Disney has previously contested the allegations and findings presented in the lawsuit. The case was bolstered by an analysis of Disney's human resources data from April 2015 to December 2022, which indicated that female employees were compensated approximately 2% less than their male counterparts. This analysis was conducted by David Neumark, a labor economist and professor at the University of California, Irvine.
The settlement agreement, which has been submitted to a California state court, is pending judicial approval, according to the attorneys involved. This settlement between Disney and its female employees highlights the enduring struggle for pay equity in the workplace.
The courage of LaRonda Rasmussen and the 9,000 women who joined the lawsuit underscores the importance of holding even the largest corporations accountable for systemic discrimination. For employers, this case serves as a reminder of the legal and ethical imperative to ensure equitable compensation practices. For employees, it demonstrates that collective action can drive meaningful change. As Disney takes steps to review and address pay disparities, the settlement sets a precedent, emphasizing that fairness and transparency must be foundational to employment law and corporate policy.
