Disney Agrees to Pay $43 Million to Settle Lawsuit Alleging it Paid Men More Than Women
Disney has agreed to a $43 million settlement in response to allegations that it paid female employees less than their male counterparts in comparable roles over nearly a decade.
The lawsuit, initiated in 2019 by former employee LaRonda Rasmussen, claimed that she discovered six male colleagues with identical job titles earned significantly more than she did. This included one individual with considerably less experience, who reportedly earned $20,000 more annually.
Approximately 9,000 women, both current and former employees, joined the class-action lawsuit.
Disney Denies Fault
While agreeing to the settlement, Disney denied any wrongdoing.
“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,” a Disney spokesperson said in a statement.
Measures for Pay Equity
Under the settlement terms, Disney will hire a labour economist to assess pay equity among its full-time, non-union California employees below the vice president level for three years. Any identified pay disparities will be addressed.
“This case highlights the courage of women who risked their careers to confront one of the world’s largest entertainment companies over pay disparity,” said Lori Andrus, a partner at Andrus Anderson, one of the law firms representing the plaintiffs.
Allegations of Historical Inequities
The lawsuit alleged that Disney perpetuated pay disparities by basing salaries on employees’ prior earnings without accounting for gender-based pay gaps at their previous workplaces.
Disney countered by citing a 2022 review of its pay practices, which found that women earned 99.4% of what men earned. The company also argued that the case should not qualify as a class action due to the decentralised nature of pay decisions, which are handled by numerous managers across various divisions.
The settlement still requires judicial approval to take effect.
