Disney has agreed to pay $233 million to Disneyland resort workers to settle a class action lawsuit alleging that the entertainment giant was not adhering to a voter-approved minimum wage law in the city of Anaheim.
According to a report in the Voice of OC, it is the largest wage theft settlement in California history.
The minimum wage law, approved by Anaheim voters in 2018 (Measure L), requires that all businesses in Anaheim receiving city subsidies pay their workers a minimum wage of at least $20 an hour as of 2022. It also instituted an additional 2% raise for each worker in perpetuity.
What The Disneyland Wage Theft Settlement Means
The settlement means workers will get back pay for the money they were supposed to get since the lawsuit was filed five years ago, plus 10% interest. This comes in the wake of Disney reaching an agreement earlier this year with a coalition of four unions representing 14,000 workers for a new contract that raised the minimum wage to $24 an hour.
Disney officials have said they had not received any subsidies from the city. Still, a panel of appellate court judges ruled differently last year, pointing to a 1996 agreement between the city and Disney for bonds to fund improvements in the resort area.
That deal enabled Disney to get a refund on their taxes during years when the city could meet its obligations to pay down the bond. The court ruled that this amounted to a “subsidy.” That ruling opened the door for thousands of park employees to receive back pay, which the company has denied them since 2018.
This settlement is the outcome of a class action lawsuit filed by Disneyland Resort workers back in 2019 alleging that Disney failed to follow Measure L, a law city officials said at the time that Disney would be exempt from.
Federal, State or Local: Which Minimum Wage Should Employers Pay?
Employers must adhere to the standard that benefits employees the most when determining which minimum wage to follow. This principle arises from the fact that federal, state, and local governments can each establish a minimum wage, but employers must comply with the highest rate applicable to their jurisdiction.
The federal minimum wage serves as a baseline for all workers in the United States. States can implement higher minimum wages, and many do so to account for regional economic conditions. For example, California’s state minimum wage is significantly higher than the federal rate. Employers in such states must follow the state’s higher minimum wage.
In addition to state regulations, some cities and counties impose their own minimum wage laws, often exceeding the state rate. For instance, cities like San Francisco, Los Angeles, or, in this case, Anaheim, have set higher minimum wages to reflect their elevated cost of living. If a local ordinance sets a higher rate than the state minimum wage, employers in that city or county must comply with the local standard.
For employers, this means understanding the laws at all three levels (federal, state, and local) and ensuring compliance with the rate most favorable to employees.
How to Determine If You Are Being Paid the Correct Minimum Wage
To determine if you are being paid the correct minimum wage, start by understanding the wage laws applicable in your area. First, research the current federal minimum wage, as well as the minimum wage in your state and city or county. You can find this information on official government websites or labor department resources.
Next, check your pay stubs and calculate your hourly wage, ensuring it aligns with the highest applicable rate. If you are paid by the hour, divide your total wages by the number of hours worked.
For salaried employees, divide your total pay by the hours worked to see if it meets the minimum hourly rate. Discuss the issue with your employer or human resources department if you suspect underpayment. You can also contact your local labor board or a workers’ rights organization to file a complaint or seek guidance.
How to Keep Detailed Employee Records
Keeping detailed records of potential minimum wage violations is essential for building a strong case. Start by maintaining a personal log of your work hours, including dates, start and end times, and any unpaid breaks. Compare this to your pay stubs or direct deposit records to ensure they match. Note any discrepancies, such as unpaid overtime or hourly rates below the minimum wage.
Retain copies of your employment contract, wage agreements, and any communications with your employer regarding pay. Use spreadsheets or apps to organize the data for clarity. Include notes about any verbal or written promises made by your employer related to compensation.
If you receive tips or commissions, document those amounts as well. Store all records securely, and consider backing them up digitally. Detailed, accurate records can help strengthen your claim and support your case if you intend to file a lawsuit or join in a class action.
When Should You Contact an Employment Lawyer?
You should consider contacting a lawyer if you suspect a minimum wage violation to protect your rights and ensure you receive fair compensation. If you have reviewed your pay stubs and compared them to the applicable minimum wage laws (federal, state, and local), and your employer is not paying the correct rate, it’s time to seek legal counsel. An employment lawyer can help verify the violation and advise you on what steps to take next.
If you’ve raised the issue with your employer and experienced retaliation — such as reduced hours, termination, or harassment — you should contact a lawyer immediately. Retaliation is illegal, and a lawyer can help protect your rights.
Determining minimum wage compliance can be complicated for tipped employees, independent contractors, or those working multiple jobs. A lawyer can help clarify whether your situation qualifies for minimum wage protections and identify any violations.
Bisnar Chase has a dedicated employment law department. Our attorneys are dedicated to protecting the rights of employees and holding employers accountable for workplace violations. Contact us for a free consultation.
Source: https://voiceofoc.org/2024/12/disney-settles-wage-theft-lawsuit-for-233-million/
Ian Silvers
Ian Silvers is a partner and trial lawyer at Bisnar Chase, specializing in employment law and class action lawsuits. Mr. Silvers has multiple seven-figure verdicts and settlements as well as published opinions.
