(PatriotNews.net) – Disney pays $43 million to resolve a gender pay lawsuit, highlighting ongoing issues of pay disparity in major corporations.
At a Glance
- Disney settles gender-pay lawsuit for $43 million, benefiting nearly 9,000 women.
- The lawsuit was initiated by LaRonda Rasmussen due to a $20,000 pay gap.
- Settlement includes compensation for women employed since 2015 in California.
- Judicial approval of the settlement is required.
Disney’s Major Settlement
Disney’s agreement to settle the gender pay lawsuit for $43 million brings to light substantial pay disparities affecting nearly 9,000 women. This lawsuit was originally initiated by employee LaRonda Rasmussen, who uncovered a $20,000 pay difference with a male counterpart of lesser experience. The settlement not only aims to resolve past grievances but also promotes a future of equitable pay practices within the company.
The specifics of the settlement involve salaried female employees in California employed since April 1, 2015, encompassing Disney’s theme parks, cruise ships, and entertainment studios. Notably, this excludes entities like ESPN, Pixar, and Hulu. The settlement, mediated by Hunter R. Hughes III, awaits judicial approval and offers eligible women the choice to opt out or object.
Disney has agreed to pay $43.25 million to settle a class action lawsuit that accused the company of systematically paying women less than male employees with the same experience. https://t.co/jzOsRVUxmN
— Variety (@Variety) November 26, 2024
Disney’s Commitment Amidst Disputes
Despite settling, Disney has disputed the validity of studies showing women earning 2% less than males. Nevertheless, the company agreed to use these findings to assist in distributing the settlement funds. Disney remains committed to fair compensation, hiring an external consultant and labor economist for ongoing pay assessments.
This settlement amount, though substantial, is significantly lower than the projected $300 million if the case proceeded to trial. Attorney fees up to a third of the settlement can be claimed by the plaintiffs’ legal team, alongside $1.8 million designated for litigation costs.
Disney has agreed to pay $43.3 million to settle a lawsuit alleging that its female employees in California earned $150 million less than their male counterparts over an eight-year period, the plaintiffs' lawyers said in a statement https://t.co/6T5TmWVSIR
— Reuters (@Reuters) November 26, 2024
Impact on Industry Standards
This settlement marks a significant step for gender equity in the workplace, potentially setting a precedent for other major corporations. Lori Andrus praised the plaintiffs’ courage, saying, “I strongly commend Ms. Rasmussen and the women who brought this discrimination suit against Disney, one of the largest entertainment companies in the world. They risked their careers to raise pay disparity at Disney.”
This case underscores the relentless need for discussion and reform in workplace equality, pressing businesses to reevaluate their practices and embrace fair compensation irrespective of gender.
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