Disney Pays Massive Sum to Settle Lawsuit Accusing Company of Paying Women

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Walt Disney reached an agreement to pay $43.3 million to resolve a lawsuit claiming its California female employees earned $150 million less than their male colleagues over an eight-year period, the plaintiffs’ attorneys confirmed on Monday.

A motion has been filed to seek approval of the settlement, which would cover a broad range of salaried Disney employees in California, Variety reports.

If the petition is granted, thousands of women who have worked for Disney since April 1, 2015, will receive checks to compensate for the wage disparity. The outlet notes:

The suit was filed in 2019, alleging that Disney policies — including basing a new hire’s salary on their pay at their previous employer — resulted in discrimination against women. A study commissioned by the plaintiffs found that one category of women was paid 2% less than their male counterparts, while a separate category was paid .58% less.

Disney continues to dispute the validity of the study, but has agreed to use it as a basis on which to apportion the settlement funds. Under the agreement, the plaintiffs’ attorneys can seek judicial approval for up to one third of the settlement amount, or about $14.4 million, to cover legal fees, plus $1.8 million in litigation expenses.

“I strongly commend Ms. Rasmussen and the women who brought this discrimination suit against Disney, one of the largest entertainment companies in the world,” plaintiffs’ attorney Lori Andrus, a founding partner of Andrus Anderson, said in a statement seen by Variety.

“They risked their careers to raise pay disparity at Disney.”

In a statement, the entertainment company defended its pay practices and said it was pleased to have concluded the case.

“We have always been committed to paying our employees fairly and have demonstrated that commitment throughout this case, and we are pleased to have resolved this matter,” a spokesperson said.