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Disney proposes $43.25M settlement to end gender pay-disparity class action lawsuit

By Mike Heuer
The Walt Disney Company on Monday proposed a $43.25 million settlement to end a class action lawsuit filed by female workers over gender pay disparities at Disney's California locations and subsidiaries. File Photo by John Angelillo/UPI
The Walt Disney Company on Monday proposed a $43.25 million settlement to end a class action lawsuit filed by female workers over gender pay disparities at Disney's California locations and subsidiaries. File Photo by John Angelillo/UPI | License Photo

Nov. 26 (UPI) -- Female Disney workers in California would receive $43.25 million to end their class action lawsuit over gender pay disparities under a proposed settlement.

Attorneys for the plaintiffs on Monday filed a motion seeking court approval of the settlement, which applies to a range of female Disney workers who were paid less than their male counterparts despite having the same experience, Variety reported Tuesday.

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If approved by the Los Angeles Superior Court, up to 14,000 current and former female workers for the The Walt Disney Company and its subsidiaries since April 1, 2015, will share the $43.25 million settlement.

"We have always been committed to paying our employees fairly and have demonstrated that commitment throughout this case," a Disney spokesperson said in a prepared statement. "We are pleased to have resolved this matter."

The settlement offer is much lower than an estimated $300 million settlement if Disney had lost the case that was scheduled to go to trial in May.

Current and former workers at ESPN, Hulu, Pixar and prior Fox business assets, such as FX and National Geographic, are not eligible for settlement funds.

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The plaintiffs are represented by the Cohen Milstein, Andrus Anderson and Goldstein Borgen law firms.

The plaintiffs filed their motion for preliminary court approval of the $43.25 million settlement offer from Disney on Monday.

Disney agreed to retain a third-party industrial consultant to provide employees with training on best practices for ensuring workers are paid in accordance with external market data, the Cohen Milstein law firm announced on Tuesday.

Disney also agreed to retain the services of a labor economist for three years to analyze the pay equity of all full-time, non-union workers in California who do not hold at least a vice presidential position within the company and its subsidiaries.

The labor economist also will determine if any pay discrepancies exist and address them if found.

The Andrus Anderson law firm initiated the class action in 2019 on behalf of lead plaintiff LaRonda Rasmussen and determined Disney paid female workers less than their male counterparts.

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