Disney Settles Wage Theft Case for $233 Million

In a major development that signals growing accountability for wage violations in Orange County, CA, The Walt Disney Company has agreed to a $233 million settlement to resolve claims of wage theft affecting tens of thousands of workers at its California theme parks. This case represents one of the largest wage and hour settlements in state history and highlights how widespread these violations remain across industries.

Background of the Case

The lawsuit, originally filed in 2019, alleged that Disney failed to pay workers at Disneyland and Disney California Adventure the legally required minimum wage under Anaheim’s living wage ordinance. The ordinance, passed in 2018, mandated a minimum wage of $15 per hour (increasing annually) for hospitality businesses receiving city subsidies. Plaintiffs claimed Disney benefited from a city tax rebate program, triggering the law’s requirements.

Workers reported being paid below the local living wage, denied overtime, and required to work off the clock without compensation. Plaintiffs also cited missed meal and rest breaks, misclassified hours, and paycheck discrepancies. The settlement affects more than 25,000 current and former employees, many of whom worked in hourly roles at the theme parks.

Settlement Terms and Worker Impact

The $233 million settlement, approved in principle by the parties, will be distributed among eligible workers who were underpaid between 2018 and 2024. Each affected employee is expected to receive back wages, interest, and penalties. The agreement also includes attorney’s fees and monitoring to ensure future compliance.

Although Disney denies wrongdoing, the settlement avoids a lengthy trial and closes a case that drew public attention to the financial struggles of theme park employees. Many workers reported living paycheck to paycheck, with some relying on food banks or working multiple jobs despite full-time employment.

Wage and Hour Violations are a Widespread Problem

The Disney case underscores a much broader issue: wage theft is common across industries, particularly among low-wage workers in hospitality, retail, food service, construction, and healthcare. Common violations include:

• Unpaid overtime
• Off-the-clock work
• Misclassification of employees as independent contractors
• Denied meal and rest breaks
• Inaccurate wage statements

In California, these violations can lead to serious legal consequences under the state’s Labor Code. Workers may be entitled to back pay, interest, waiting time penalties, and damages. In some cases, claims are brought under the Private Attorneys General Act (PAGA), which allows employees to sue on behalf of the state for labor violations affecting themselves and coworkers.

What Workers Should Know

Employees who suspect wage violations should:

• Understand meal and rest break rights: One 30-minute unpaid meal break for every five hours worked and a 10-minute paid rest break for every four hours. 
• Know the minimum wage and overtime rules: California’s statewide minimum wage increases annually and may be higher in certain cities. Overtime pay is due for work exceeding eight hours in a day or 40 hours in a week, and double time may apply in some cases.
• Review pay stubs for missing hours, incorrect rates, or unlawful deductions.
• Track hours worked, including unpaid time before or after scheduled shifts.
• Request copies of personnel and payroll records under California law.
• Report violations to the California Labor Commissioner. 
• Consult an Orange County employment law attorney as soon as possible.

Employers must maintain accurate records, comply with wage laws, and train supervisors to avoid illegal pay practices. Failing to do so gives you the right to hold them accountable.