A California appellate court recently ruled that the Walt Disney Co. violated a local minimum wage law in Anaheim, Ca., the location of Disneyland, the company's original theme park.
A class-action lawsuit representing about 25,000 workers claimed Disney didn't pay the minimum wage under the local ordinance, known as Measure L, which was passed by Anaheim voters in 2018 to boost pay for Disneyland Resort workers. The lawsuit also alleged failure to pay for overtime hours worked and failure to pay state waiting-time penalties, which are extra sums an employer must pay to a worker for every day it hasn't paid the worker's final wages after the employment relationship ends.
The plaintiffs sought back pay and civil penalties under California's Private Attorneys General Act.
Case Turned on Rebate Question
The local rule established a minimum wage for Anaheim resort companies that have tax rebate agreements with the city. It set the local minimum wage at $19.40 for 2023. The lawsuit cited several workers who were paid $12 per hour. Disney argued that it was not covered under the local rule because it didn't receive a city subsidy or rebate.
However, the entertainment giant, based in Burbank, Calif., did benefit from a 1996 agreement where the city of Anaheim issued $400 million in municipal bonds to pay for infrastructure improvements and expansions to Disneyland. The city and Disney also signed an agreement under which Disney would make up the shortfall if there was any year...
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