Disney's Gender Pay Gap: A $43 Million Settlement

In a significant move to address gender-based wage disparities, Disney has agreed to pay $43.25 million to settle a class action lawsuit brought by women employees. The suit alleged systemic discrimination in pay practices, with women being paid less than men with equivalent experience. This settlement, one of the largest in recent years, highlights the challenges faced by women in the workplace and the importance of fair compensation.

The lawsuit, filed in 2019, claimed that Disney's policy of basing new hires' salaries on their previous compensation perpetuated the gender pay gap. A study commissioned by the plaintiffs found that women were paid 2% and 0.58% less than their male counterparts in two separate categories. Despite disputing the validity of the study, Disney agreed to use it as a basis for distributing the settlement funds.

As part of the settlement, Disney will hire an outside industrial consultant to train employees on benchmarking pay levels and engage a labor economist to conduct pay studies over the next three years. This proactive approach signals a commitment to addressing potential pay disparities and ensuring fair compensation for all employees.



The settlement also includes provisions for the plaintiffs' attorneys to seek judicial approval for up to one third of the settlement amount, equating to approximately $14.4 million, to cover legal fees, in addition to $1.8 million for litigation costs.

The class action lawsuit was brought under the California Equal Pay Act, which was strengthened in 2016 under Governor Jerry Brown. The women in the class were non-union, salaried employees working at Disney's theme parks, cruise ships, and film and television studios, including ABC, Marvel, and Lucasfilm.

Disney's lawyers fought the allegations, arguing that it was impossible to accurately compare skill and experience levels across a wide range of disparate jobs. However, the settlement suggests that the company has recognized the need for greater transparency and accountability in its pay structure.

In response to the settlement, plaintiffs' attorney Lori Andrus, a founding partner of Andrus Anderson, commended the women who brought the suit against Disney, stating, "They risked their careers to raise pay disparity at Disney." Andrus also expressed encouragement regarding Disney's commitment to annual pay equity reviews and engaging an outside consultant for pay level benchmarking.



The settlement is a significant step towards addressing the gender pay gap in the entertainment industry. As one of the largest entertainment companies in the world, Disney's commitment to fair compensation sets an example for other companies to follow. By proactively addressing wage disparities, Disney can foster a more inclusive work environment and attract and retain top talent.

In conclusion, the $43 million settlement in the gender pay gap lawsuit against Disney underscores the importance of fair compensation and equal opportunity in the workplace. As one of the largest entertainment companies in the world, Disney's commitment to addressing wage disparities sets an example for other companies to follow. By proactively addressing pay disparities, Disney can foster a more inclusive work environment and attract and retain top talent.