California’s 4th District Court of Appeal ruled that Disneyland Resort has illegally evaded a minimum wage law, which means Cast Members could see a wage increase to nearly $20 an hour.
Measure L was approved by voters in 2018 and required businesses that receive subsidies from the City of Anaheim to raise their minimum wage to at least $15/hour in 2019, and then by one dollar each year, leading to $18 in 2022. Cast Members sued in 2019, claiming that Disney was subject to the measure but hadn’t complied with it. The question was whether or not Disney had received subsidies that Measure L covered.
In August 2018, Disney canceled tax incentive agreements with Anaheim which would’ve used hotel taxes to help pay for a luxury hotel at the resort. The project was canceled as a result of a dispute between the two parties. Disney benefited from a 1996 agreement that used hotel taxes to pay for an expansion but in 2021, Judge William D. Claster ruled that those agreements didn’t qualify as a subsidy or tax rebate as defined in the measure.
Claster wrote in a tentative ruling, “Whether the city of Anaheim ‘subsidized’ the Disney Defendants in a colloquial sense is not an issue.”
This week, the three judges of the 4th District Court of Appeal overturned Claster’s decision, stating the 1996 deal actually did count.
“We are pleased the court focused on the economic reality of Disney’s agreements with Anaheim and concluded that Disney is obligated to...
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