Disney has consented to pay $43 million to resolve a lawsuit alleging it compensated female workers less than their male counterparts in equivalent roles for nearly a decade.
The agreement, finalised yesterday, originates from a 2019 lawsuit initiated by LaRonda Rasmussen.
She claimed that she discovered six men with the same job title earned significantly more than she did, including one with considerably less experience, who was reportedly making $20,000 more annually. Approximately 9,000 women, comprising both former and current employees, joined the case.
Disney challenged the accusations and denied any wrongdoing.
“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.
Under the terms of the settlement, Disney will engage a labour economist to evaluate pay equity among its full-time, non-union California employees below the vice president level over the next three years.
The economist will be tasked with identifying and rectifying any disparities, according to the three law firms representing the plaintiffs.
“I strongly commend Ms. Rasmussen and the women who brought this discrimination suit against Disney, one of the largest entertainment companies in the world.
They risked their careers to raise pay disparity at Disney,” said Lori Andrus, a partner at Andrus Anderson, in a statement.
The lawsuit alleged that Disney paid female employees less than male colleagues when they joined the company because it didn’t account for prior wage disparities at their previous jobs, as reported by The Wall Street Journal.
In its defense, Disney pointed to a 2022 review of its pay practices, which found that women earned 99.4% of what men earned.
The company also argued that the case didn’t qualify as a class action, given that pay decisions were made by hundreds of managers across its various divisions. The settlement still requires judicial approval to be finalised.
