Walt Disney Co. has agreed to a $233 million settlement with more than 51,000 Disneyland employees, ending a years-long legal fight over pay.
A California judge gave final approval to the class-action settlement this week, marking what attorneys believe to be one of the largest wage-related settlements in state history.
On Tuesday, Orange County Superior Court Judge William Claster signed off on the deal, describing it as fair and consistent with public policy.
The settlement resolves claims that Disney underpaid thousands of resort workers by failing to comply with Anaheim's living wage law, known as Measure L.
Measure L was approved by voters in 2018. It required resort-area businesses receiving city subsidies to pay workers at least $15 an hour in 2019, with increases each year.
Disney argued it was exempt after canceling certain tax deals with Anaheim, but appellate judges later ruled the company was still bound by the law.
According to Reuters, under the settlement terms, about $179.6 million will go directly to current and former employees in the class.
Attorneys estimate the average payout to be around $3,000 each. An additional $17.5 million will be paid to the California Labor and Workforce Development Agency as a civil penalty, while $35 million will go toward attorney fees and other case costs.
"This is the end of the lawsuit," said Richard McCracken, the lead attorney representing the workers. "We believe this is the largest wage class action settlement in California history."
A federal judge has approved a $233 million settlement between Disney and more than 51,000 Disneyland employees! 🎉 The lawsuit was over the theme park’s failure to pay employees in accordance with Anaheim’s "living wage" ordinance. According to the employees' lead attorney, it… pic.twitter.com/GxWRgjW57U
— Chip and Company (@4chipandcompany) September 18, 2025
Judge Approves Disney Settlement in Long-Running Wage Dispute
The case began in December 2019 after several resort employees, backed by unions, accused Disney of avoiding Measure L obligations.
A lower court initially sided with Disney in 2021, but the decision was overturned in July 2023 by a state appeals court, clearing the way for the settlement.
Disney said it has already raised pay in recent years. In October 2023, the company announced all workers were earning at least $19.40 an hour, SiliconValley said.
By July 2024, Disney agreed with unions to raise the minimum pay for more than 13,000 "cast members" in attractions, custodial, and merchandise roles to $24 per hour—well above both California's minimum wage of $16.50 and Measure L's rate of $19.90.
"Disney cares deeply about our cast members," a company spokesperson said after the settlement was approved.
"We are proud to already offer some of the most competitive wages and comprehensive employee benefits in our industry."
Lawyers representing the workers must file a final report by June 30, 2026, detailing how settlement funds were distributed.
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