Walt Disney (DIS.N) has agreed to pay $43.3 million to settle a gender pay discrimination lawsuit filed by its female employees in California. The lawsuit, which alleged that Disney’s female employees earned $150 million less than their male counterparts over an eight-year period, was filed in 2019 and has now been resolved. The settlement amount is a significant step toward addressing pay inequities within the entertainment giant, according to the plaintiffs’ attorneys.
Under the terms of the settlement, Disney will also take proactive steps to address pay disparities within its workforce. The company has committed to hiring a labor economist for three years to analyze pay equity among its full-time, non-union employees in California who are below the vice president level. The economist will help identify and rectify any pay gaps between male and female employees, ensuring that gender-based wage disparities are eliminated.
The lawsuit was initially brought by LaRonda Rasmussen, a former Disney employee who discovered that she was paid substantially less than six male colleagues with the same job title, despite one of them having several years less experience. Rasmussen’s salary was found to be $20,000 less than a male colleague’s, which sparked her decision to take legal action. Over time, the class action expanded to include approximately 9,000 current and former female employees of Disney.
Disney attempted to block the class action, but a judge ruled in December 2022 that the case could proceed. The plaintiffs were supported by an analysis of Disney’s human resources data from April 2015 to December 2022, which showed that female employees were, on average, paid about 2% less than their male counterparts. The analysis was conducted by David Neumark, a labor economist and professor at the University of California, Irvine.
Lori Andrus, a partner at Andrus Anderson, one of the law firms representing the plaintiffs, commended the women involved in the lawsuit for their bravery. “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 awareness about pay disparity at Disney,” Andrus said.
In response to the settlement, Disney reiterated its commitment to fair pay practices. A spokesperson for the company stated, “We have always been committed to paying our employees fairly and have demonstrated that commitment throughout this case. We are pleased to have resolved this matter and look forward to continuing our efforts to ensure pay equity.”
The settlement, which was filed in California state court, is subject to judicial approval before it can be finalized.
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