Walt Disney must pay employees a living wage
Walt Disney has come under both criticism and judicial scrutiny after a California court ruled that the company must pay billions to its employees. According to the ruling, Disneyland, which is part of the Walt Disney conglomerate, has not paid wages in accordance with the local living wage ordinance in recent years.
The case, which affected tens of thousands of people
More than 50,000 current and former workers at Disneyland in Anaheim, California, have joined the class action lawsuit. They claimed that they were not even paid what they were entitled to under a 2018 city ordinance. That ordinance, known as Measure L, established a mandatory minimum hourly wage of $15, with periodic indexing in subsequent years.
Disney defended itself by arguing that the rule did not apply to it because the original agreements between the city and the company had been cancelled. But the court rejected that argument, finding that the company was obligated to pay its employees wages under current law.
Financial implications for the corporation
The total amount that Disney will have to pay is over USD 233 million (approximately CZK 4.8 billion). The largest share – around 180 million – will go to the employees themselves as compensation for unpaid wages. Another portion will be split between the attorneys and the state agencies that oversaw the case.
Disney responds, but criticism remains
The company is trying to temper the decision, saying that most Disneyland workers now make more than $22 an hour, well above the minimum. The company also emphasizes that it provides benefits that are among the best in the industry. Critics, however, argue that such moves come too late and rather prove that Disney acted only under pressure.
Wider implications for employment law
The whole case has ramifications beyond Disneyland. It shows that local regulations and ordinances can be crucial in protecting employees, and also that even the largest corporations are not beyond the reach of justice. Thus, the court verdict may set a precedent for other similar cases in the United States.
Disney’s story is thus not just about billions in compensation, but also about the growing emphasis on fair working conditions and the responsibility of large companies to those who keep them running with their day-to-day work.
Photo source: www.pexels.com
Author of this article
WAS THIS ARTICLE HELPFUL?
Support us to keep up the good work and to provide you even better content. Your donations will be used to help students get access to quality content for free and pay our contributors’ salaries, who work hard to create this website content! Thank you for all your support!
OR CONTINUE READING