The $233 Million Win for Anaheim Disney Theme Park Workers
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To resolve a class action lawsuit alleging wage violations at Anaheim Disney theme parks and hotels, the company agreed to a $233 million settlement. The suit alleged Disney failed to comply with Anaheim’s Living Wage Ordinance (Measure L) for hourly and service charge-eligible workers since January 1, 2019. A judge recently approved the settlement, marking what many legal observers believe is one of the largest wage & hour class action recoveries in California history.
Case: Grace et al. v. The Walt Disney Company et al.
Court: Orange County Superior Court
Case No.: 30-2019-01116850-CU-OE-CXC
The Plaintiff: Grace et al. v. The Walt Disney Company et al.
Plaintiffs include Kathleen Grace, Regina Delgado, Alicia Grijalva, Javier Terrazas, and others who are current or former hourly workers at Disney theme parks and hotels in Anaheim. They allege Disney failed to pay them the minimum wage required under Anaheim’s Living Wage Ordinance, as well as related service charges, overtime, and full wages upon separation, among other violations.
The Defendant: Grace et al. v. The Walt Disney Company et al.
The defendants are The Walt Disney Company and Walt Disney Parks and Resorts U.S., Inc. They are accused of not adjusting wages in accordance with Anaheim’s LWO, despite benefiting from “City Subsidies” (such as tax rebates or reimbursement agreements) under agreements with the City, which the Court of Appeal found make them subject to the law.
A History of the Case: Grace et al. v. The Walt Disney Company et al.
Measure L (Anaheim’s Living Wage Ordinance) was passed by voters in 2018 and took effect on December 4, 2018. It requires certain hospitality employers, who benefit from city subsidies, to pay a progressively increasing wage, starting at $15/hr in 2019 and rising each year.
Plaintiffs filed the class action in December 2019.
In 2023, the California Court of Appeals held that Disney was subject to the LWO due to its subsidy arrangements.
After settlement negotiations, a proposed settlement was preliminarily approved, and in September 2025, the Orange County Superior Court granted final approval to the $233 million settlement.
The Main Question Being Considered: Grace et al. v. The Walt Disney Company et al.
The question is whether Disney was legally required to comply with Anaheim’s LWO because it benefited from a “City Subsidy,” thus making it obligated to pay its hourly nonexempt employees the wages and service charges prescribed by the ordinance, including retroactive wages, penalties, and damages.
Why This Case Matters: Grace et al. v. The Walt Disney Company et al.
This settlement is a precedent-setting example of how municipal living wage laws can hold large employers accountable, even when those employers argue for exemptions or non-coverage.
It demonstrates that “subsidy” agreements—such as tax rebates or reimbursement contracts tied to public infrastructure—can form the legal basis for requiring compliance with living wage ordinances.
For Disney workers, it means tens of thousands are receiving back pay and wage adjustments; for employers, it underscores that compliance with local wage laws isn’t optional if subsidy arrangements bring them under those laws.
FAQ: Grace et al. v. The Walt Disney Company et al.
Q: What was Measure L / the Anaheim Living Wage Ordinance?
A: A law passed by Anaheim voters in 2018 requiring certain hospitality employers receiving city subsidies to pay increasing minimum wages each year, starting at $15/hr in 2019.
Q: Are “City Subsidies” essential to subjecting Disney to Measure L?
A: Yes. The Court of Appeal ruled that Disney did benefit from “City Subsidies” under agreements with the City (e.g., tax rebates or reimbursement agreements), making the company subject to the wage requirements.
Q: How many workers are affected by this settlement?
A: Approximately 51,478 current and former Disneyland employees in Anaheim are part of the class.
Q: How much will workers receive from the settlement?
A: Of the $233 million total, about $179.6 million is allocated for back wages and related payments to class members; $17.5 million for penalties to the California Labor & Workforce Development Agency; and $35 million in attorneys’ fees.
Q: Does Disney admit wrongdoing in this case?
A: No. The settlement explicitly states that it is not an admission of liability; rather, both sides agreed to settle to avoid the time, cost, and uncertainty of continued litigation.
If you have questions about filing a California class action or believe your employer has violated local wage ordinances or denied required wages or service charges, reach out to Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in their offices in Los Angeles, San Diego, San Francisco, Sacramento, Riverside, and Chicago.
