Disney Reaches Settlement in Class Action Lawsuit Over Alleged Pay Discrimination.
Disney has reached a settlement in a long-running class action lawsuit that accused the company of widespread pay discrimination against female employees. The case, initiated in 2019, involved allegations that women at Disney were systematically paid less than their male counterparts for work of equal value across various corporate sectors. Although the details of the settlement have not been made public, both parties involved have informed the Los Angeles Superior Court that they have agreed to resolve the matter.
Tentative Agreement Reached, Final Terms Being Worked Out
Attorneys representing both the plaintiffs and Disney submitted a joint statement to the court in September, announcing that "the parties have reached a tentative agreement" and are in the process of finalizing the terms of the settlement. According to the statement, the two sides are working to complete a formal written settlement agreement. A motion for approval of the settlement is expected to be filed by Friday, after which the court will consider the terms of the agreement.
Los Angeles Superior Court Judge Elihu M. Berle is provisionally scheduled to review the proposed settlement for approval, which would bring an end to one of the most significant gender discrimination cases in the entertainment industry.
The Class Action: A Fight for Equal Pay
The lawsuit at the heart of this case was filed by LaRonda Rasmussen, a veteran product development manager at Walt Disney Studios, and Karen Moore, a senior copyright administrator with over 20 years of experience at Disney’s Hollywood Records. The plaintiffs, along with approximately 9,000 current and former female employees, allege that Disney paid them less than their male colleagues for performing comparable work. The class action seeks damages that could reach up to $300 million.
In 2020, Disney strongly denied the accusations, asserting that the company has always adhered to fair and equitable pay practices. However, the case gained significant traction after key discoveries raised doubts about Disney's claims of gender pay equality.
A Groundbreaking Class of Employees
The lawsuit represents one of the largest gender discrimination cases under the Equal Pay Act, with a diverse group of employees involved from various divisions of Disney, including film production, theme parks, record labels, home distribution, broadcasting, and research and development. The class consists of women who were employed by Disney between April 2015 and three months before the trial, which was scheduled to begin in May 2024. These women, all holding positions below the vice president level, claim they were subject to a gender-based pay gap that persisted across the company.
In 2023, the case overcame a major hurdle when a judge approved the inclusion of employees from Disney’s film production division, as well as other sectors such as broadcasting and theme parks. This decision helped solidify the scope of the class action and moved the case closer to trial.
Key Evidence Reveals Disparities in Pay
Recent court filings have unearthed crucial evidence that challenged Disney’s assertions of pay equity. One particularly striking piece of evidence involved Nancy Dolan, a manager of creative music marketing, who was reportedly overlooked for a promotion to director despite strong support from her supervisor, music president Mitchell Leib. Leib described Dolan in an email as “worth her weight in gold,” and advocated for a reassessment of her promotion. Despite his endorsement, Dolan was passed over, a decision that was later described as a “pay equity nightmare” by Disney’s vice president of compensation, NaShawn Bacon, in a 2020 email.
This discovery was part of a set of nearly 200 court documents that highlighted instances where female employees were denied opportunities for advancement and faced gender-based pay disparities. The revelations fueled further scrutiny of Disney’s compensation practices and were pivotal in moving the case forward.
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