Disney has agreed to a $43.3 million settlement in a gender pay disparity lawsuit filed by female employees in California, addressing claims of unequal pay over an eight-year period.
The lawsuit, originally brought forward in 2019 by LaRonda Rasmussen, accused the company of paying women significantly less than men in similar roles.
Rasmussen, a product development manager at Disney, stated she discovered her male colleagues with the same job title earned more, including one with less experience who made $20,000 more annually.
This claim grew into a class-action lawsuit representing approximately 9,000 current and former female employees. Despite Disney's efforts to block the case, a judge allowed it to proceed in December 2022.
A labor economist hired to analyze Disney's pay practices found that women were paid, on average, 2% less than their male counterparts from 2015 to 2022, said Reuters. This analysis played a pivotal role in shaping the lawsuit.
Disney Commits to Pay Equity Measures
The settlement agreement includes provisions for Disney to retain a labor economist for three years to monitor pay equity among non-union, full-time California employees below the vice president level.
Attorney Lori Andrus commended Rasmussen and other women involved, noting their courage in challenging one of the world's largest entertainment companies. "They risked their careers to highlight pay disparity at Disney," Andrus said, according to The Washington Post.
Disney, while disputing the allegations, expressed satisfaction in resolving the matter. The company stated its commitment to fair pay practices, which includes implementing annual pay reviews and training to ensure salaries align with market standards.
The settlement, filed in California state court, awaits judicial approval. If approved, it would compensate affected women and potentially set a precedent for addressing gender-based pay gaps in other industries.
