Did Disneyland Underpay Workers Under Anaheim’s Living Wage Ordinance? $233 Million Settlement Approved for 51,000+ Employees
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When the long-running wage-and-hour class action against Disneyland finally ended, it was resolved with a $233 million settlement. Approved in September 2025, the settlement covered more than 51,000 of the popular amusement park resort’s employees.
Case: Grace et al. v. Walt Disney Co. et al.
Court: California Orange County Superior Court
Case No.: 30-2019-01116850
The Plaintiffs in the Case: Grace et al. v. Walt Disney Co. et al.
The plaintiffs are a group of current and former nonexempt hourly workers at Disney theme parks and hotels in Anaheim, California, who alleged they were not paid the minimum hourly rate and related service-charge amounts required under Anaheim’s Living Wage Ordinance during the covered period.
The Defendants in the Case: Grace v. Walt Disney Co.
In Grace et al. v. Walt Disney Co. et al., the defendants are The Walt Disney Company and Walt Disney Parks and Resorts U.S., Inc. To further define the relationship between the two listed defendants in the case, the Walt Disney Company is the parent holding company, and Walt Disney Parks and Resorts U.S., Inc. is commonly the operating subsidiary for parks/resorts.
A Brief Rundown of the Case History
The case against Disneyland questioned whether Disney was required to pay a higher hourly wage under Anaheim’s Living Wage Ordinance (Measure L), and if so, what back pay was owed to employees whose wages did not meet the minimums. When Measure L was approved in 2018, it established a living wage requirement for some types of hospitality employers tied to the Anaheim Resort District and/or city subsidies (a starting rate of $15/hr in 2019, with scheduled increases thereafter).
In December 2019, workers filed a putative class action in Orange County Superior Court, alleging that the Disneyland Resort violated Measure L by failing to pay the required minimum wage.
Litigation commenced - and continued - for several years while the parties disputed whether Disney was subject to the ordinance and, if so, what remedies would apply to the situation. A settlement was preliminarily approved in spring 2025, notices were issued to class members in May 2025, and the court granted final approval in mid-September 2025.
Main Question in the Case:
The main question in the case is whether the Living Wage Ordinance applies to Disney and, if so, whether hourly employees were underpaid relative to the ordinance’s minimum wage requirement.
Summary of the Allegations in the Wage and Hour Complaint:
The plaintiffs alleged that Disney failed to pay covered hourly workers the minimum hourly wage and related amounts mandated by Anaheim’s Living Wage Ordinance, beginning January 1, 2019.
Public settlement materials describe the ordinance as requiring escalating minimum hourly rates over time, including (as presented in the settlement information) $15/hour for 2019, followed by annual increases through 2025.
2025 Settlement Outcome of the Disneyland Wage and Hour Class Action
The court approved a $233,000,000 settlement for a reported class of 51,478 employees with $179.575 million distributed to class members, $17.475 million designated for civil penalties, and the remainder covering fees/costs, etc.
Settlement administration updates indicated that the order approving the settlement became “final” on November 17, 2025 (the “Effective Date” referenced by the administrator), after which payments began processing.
Why This Was a Landmark California Wage-and-Hour Settlement in 2025
1. The number of workers affected. In 2025, California reached one of the biggest wage-related settlements with a single employer. It covered more than 51,000 current and former employees.
2. Local laws that set minimum wages could lead to a lot of exposure. This disagreement was about a city law that raised wage requirements, not the state or federal minimum wage. The discussion shows how municipal wage laws can significantly increase the back pay that big businesses must pay when they work under public agreements or benefits.
3. Fines and back pay. The settlement structure showed how wage-and-hour cases in California can include both compensation and penalty components, with a large LWDA penalty component alongside employee payments.
FAQ: The Disneyland Wage and Hour Case
Q: What is Anaheim's "Living Wage Ordinance" (Measure L)?
A: Measure L, a voter-approved ordinance in Anaheim, establishes a higher minimum wage for specific hospitality employers linked to city subsidies and/or the Resort District. It will begin at $15 per hour in 2019 and gradually increase.
Q: Who can file a wage and hour lawsuit?
A: Any employee who believes their employer failed to pay all wages owed—such as minimum wage, overtime, meal/rest breaks, or off-the-clock work—may be able to file a wage-and-hour lawsuit, either individually or with other workers in a class or collective action.
Q: Who was covered by the settlement class?
A: The settlement class was defined to include nonexempt current and former workers employed at Disney theme parks and hotels in Anaheim during the covered period who were not paid at least the amounts required by the ordinance.
Q: What’s the Benefit of Filing a Wage and Hour Lawsuit?
A: Filing a wage-and-hour lawsuit can help you recover unpaid wages (and often additional damages and penalties), hold your employer accountable for illegal pay practices, and in some cases push the employer to change policies that impact you and your coworkers.
Q: Was Disney found liable by the court during the trial?
A: A court-approved class action settlement ended the litigation without a verdict on the merits of the case.
Q: What is Anaheim's "Living Wage Ordinance" (Measure L)?
A: Measure L, a voter-approved ordinance in Anaheim, establishes a higher minimum wage for specific hospitality employers linked to city subsidies and/or the Resort District. It will begin at $15 per hour in 2019 and gradually increase.
If you believe you were underpaid, denied legally required wage increases, or did not receive all compensation required under California wage laws or local wage ordinances, the employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP can help you assess your potential claims. Contact one of the firm’s offices in Los Angeles, San Diego, San Francisco, Sacramento, Riverside, or Chicago to discuss your options for pursuing unpaid wages and accountability under the law.
