Disney has agreed to pay US$43.25 million (AUD$66.79 million) to settle a class action lawsuit from approximately 9,000 female employees in California, which was brought against the multinational media giant in April 2019.
The settlement will see Disney recruit experts to tackle “significant pay differences” between male and female employees using a model commissioned by lawyers representing the female employees who accused the company of pay discrimination, according to a statement from the company.
In April 2019, two longtime female employees — LaRonda Rasmussen, a product development manager at Walt Disney Studios, and Karen Moore, a senior copyright administrator for Disney’s Hollywood Records, filed a lawsuit against their employer, claiming that female workers employed since 2015 were being paid less than their male workers for similar work.
The pay equity class action lawsuit filed in the Los Angeles Country Superior Court accused the company of paying its female middle managers at least US $151 million less than their male counterparts with similar experience and skill sets over the period of almost ten years.
When it was launched, Disney opposed the allegations of pay bias, saying in a court filing that it categorically denies that “they pay any female employee less than her similarly situated male coworkers and will vigorously defend themselves against each Plaintiff’s individual claims.”
This week, a lawyer for one of the women in the lawsuit said the settlement “…would not be possible without these courageous women.”
“Because of them, women can expect equitable treatment at Disney in the future,” said Christine Webber, co-chair of Cohen Milstein’s Civil Rights & Employment practice.
“I am hopeful the court will move swiftly to approve the settlement, so these hard-working women can move forward with confidence that best practices will be used and unencumbered by further litigation.”
Lori Andrus, the lead attorney representing the women, also praised her clients.
“I strongly commend Ms Rasmussen and the women who brought this discrimination suit against Disney, one of the largest entertainment companies in the world,” she said in a statement this week. “They risked their careers to raise pay disparity at Disney,” adding that Disney has “committed to run annual pay equity reviews to further promote pay equity.”
“I believe this will help strengthen the company and its brand as a key employer and contributor to California’s economy.”
Meanwhile, a spokesperson for Disney released a statement, reiterating that the company has “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.”