A three-judge panel from the Fourth Appellate District court ruled that Disney needs to follow Anaheim’s minimum wage law because it does in fact receive city subsidies.
That means Disneyland employees could soon see their minimum wage increase to nearly $20 an hour.
The court’s Thursday ruling shifts the tide in a long debated question in Anaheim:
Are taxpayers subsidizing the happiest place on earth – Disneyland?
The appellate court judges say yes.
They say Disneyland does in fact fall under a 2018 Anaheim law – dubbed Measure L – that requires resort district hospitality employers that receive city subsidies to pay workers higher wages.
The decision from the three-judge appellate panel stems from a 1996 resort district bonds agreement, which stipulated that Disney would cover bond payments if the city falls short. In turn, the city would repay Disney down the road.
“We find the Reimbursement Agreement gives Disney the right to receive a rebate—or a return—of transient occupancy taxes (paid by hotel guests), sales taxes (paid by consumers), and property taxes (paid by Disney), in any rebound years when the City’s tax revenues are sufficient to meet its bond obligations. Consequently, Disney receives a “City Subsidy” within the meaning of the [living wage ordinance] and it is therefore obligated to pay its employees the designated minimum wages,” reads the ruling.
Workers in the Anaheim resort district at taxpayer-subsidized businesses are required to be paid nearly $20...
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