The Dire Plight of Disneyland Workers and the Importance of Labor Law Enforcement
In 2018, a disturbing report from Occidental College indicated a grim reality concerning Disneyland employees. Findings pointed out a 15% plummet in real hourly wages from 2000 to 2017. Consequently, three-quarters of the employees did not earn enough to cover basic necessities, and over half the workforce lived under continuous eviction concerns. Even more startling, one in ten employees had experienced homelessness within the previous two years.
Meanwhile, the Disney CEO enjoyed an enormous paycheck of $65.6 million in 2018, highlighting the stark wage disparity in the company. Fortunately, this injustice spurred the Anaheim voters into action by approving Measure L, or the Living Wage Ordinance, which pushes for a progressive increase in the minimum wage of hospitality employees benefiting from city subsidies.
However, despite the popular support for Measure L, Disney fiercely debated and resisted its efficient application at Disneyland. This defiance eventually led to a class action lawsuit against Disneyland, which put forth a robust argument that the company still benefited from city subsidies and, hence, should comply with Measure L.
After an initial setback, the Disneyland employees finally triumphed when a California appeal court overturned the initial ruling in 2023, deeming the bond agreement a “city subsidy.” This victory was cemented when the California Supreme Court declined to review the case, leading to a landmark settlement of $233 million for wage theft—the largest in California history.
Such cases of wage theft are far more common than one might think. American workers lose approximately $15 billion annually to minimum wage violations alone, with other forms of wage theft costing an estimated $50 billion annually. However, a dismally small fraction of these stolen wages are ever recovered, which comes down to a lack of resources and scant attention given to wage theft investigations.
Nationally, the Department of Labor recovered only about $3.24 billion in stolen wages from 2017 to 2020. This lack of recovery potential is due in part to the complex nature of class-action lawsuits and the minimal resources available to state and federal agencies responsible for investigating wage theft cases. To further complicate the issue, policies like the Payroll Audit Independent Determination (PAID) program, if reinstated, could enable companies to avoid penalties for wage theft if they self-reported and paid back the stolen wages.
A key driving force behind successful wage theft recovery is the support of experienced employment law attorneys with expertise in class action cases. The Disneyland case exemplifies how these professionals can help employees navigate complex legal avenues to claim their rightful wages. They understand the intricacies of employment law, have the resources to build a compelling case, and have the will to fight for justice.
In conclusion, the Disneyland class action case poignantly reminds us of the wage theft issue plaguing many American workers. There is an urgent need for more robust labor law enforcement, better funding for relevant state agencies, and the crucial role of experienced employment law attorneys in the battle against wage theft.
This article focuses on the amazing reporting of Judd Legum at Popular Information.
On November 8, 2016, the U.S. Supreme Court heard oral argument in a case Helmer Friedman LLP successfully convinced the high court to hear. The case — Lightfoot v. Fannie Mae, Cendant Mortgage Corporation case (14-1055) — concerns whether individual homeowners who have been wrongly or fraudulently foreclosed upon by Fannie Mae have the right to sue the mortgage giant in the state courts.