An Orange County Superior Court judge ruled on Wednesday that Disneyland is not required to comply with a living wage ordinance passed by Anaheim voters, dismissing a class-action lawsuit that was filed against the company by over 25,000 park employees.
The lawsuit alleged that Disneyland was not complying with Measure L, which stipulates that any private business that receives city subsidies is required to raise each employee’s wage to $18 per hour by 2022. Voted into law by Anaheim voters in 2018, Measure L saw minimum wages jump to $15 the next year, with an annual hourly increase of $1 as to build to the 2022 requirement. A significant coalition of Disneyland employees backed the initiative in 2018.
The lawsuit argued that Disneyland took a city subsidy by allowing the Mickey and Friends parking garage to be built by the city of Anaheim on the company’s land. The city took out a $550 million municipal bond to fund construction of the garage and provide some finances to Disneyland and the Anaheim Convention Center. Ownership of the Mickey and Friends parking garage will revert to Disney once the bond is repaid.
Judge William Claster’s ruling found that Disney is not technically receiving a city subsidy, though they do receive a “significant benefit” from the city.
“Whether the Disney defendants received a ‘public subsidy’ in a general sense is a different question from whether they received or have a right to receive a city subsidy as defined, i.e., a rebate of taxes...
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