Disney’s $43.3M settlement exposes years of gender pay inequality

Walt Disney has agreed to pay $43.3 million to settle a lawsuit alleging significant pay disparities between its female and male employees in California. The settlement stems from a lawsuit filed in 2019 by LaRonda Rasmussen, who discovered that six men with the same job title earned more than she did, including a colleague with less experience who made $20,000 more annually. Around 9,000 current and former female Disney employees joined the case, which highlighted that female workers earned approximately $150 million less than their male counterparts over an eight-year span.

As part of the settlement, Disney will retain a labor economist for three years to assess pay equity among full-time, non-union California workers below the vice president level and address any discrepancies found. The law firms representing the plaintiffs announced the agreement on Monday, noting that it requires judicial approval before finalization. “I strongly commend Ms. Rasmussen and the women who brought this discrimination suit against Disney, one of the largest entertainment companies in the world,” said Lori Andrus, a partner at Andrus Anderson.

Disney contested the allegations but has maintained its commitment to fair compensation. A company spokesperson indicated that a review of pay practices in 2022 found female employees earned 99.4% of what men earned. However, the plaintiffs argued that employees’ past salaries at other firms contributed to pay disparities without considering systemic gender discrimination.

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In December 2022, a judge permitted the class action to proceed after Disney sought to dismiss it. Previous analyses have shown that female employees were paid roughly 2% less than their male counterparts from April 2015 to December 2022. This case has drawn attention to broader discussions about gender pay equity within large corporations, especially in industries historically dominated by men.

The final settlement agreement must still be approved by a California judge, further prolonging the resolution of this high-profile case.

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