Disney agrees to $43 million settlement in gender pay lawsuit

The Walt Disney Co. agreed to a $43.25 million settlement in a gender pay discrimination class action lawsuit, according to a court filing Monday.

The agreement settles allegations initially made in a 2019 lawsuit filed by Disney employee LaRonda Rasmussen, who claimed she was getting paid less than her male counterparts in the same role. More female employees later joined the case, and a California judge granted a motion for class certification in December 2023.

Among the allegations the plaintiffs made is that Disney, before 2018, “employed an enterprise-wide compensation policy” of paying women lower starting salaries than men. Disney did so, according to the plaintiffs, “in part because Disney would base starting pay on prior salary, which historically includes gender-based disparities.”

In their argument, the plaintiffs relied on the findings of a labor economist who conducted an analysis and found that, from 2015 to 2022, “women at Disney were paid less than similarly-situated men” and a female pay penalty of 2.01 percent. Disney disputed the findings of the analysis.

“We have always been committed to paying our employees fairly and have demonstrated that commitment throughout this case, and we are pleased to have resolved this matter,” a Disney spokesperson said in a statement.

Christine Webber, a lawyer for the plaintiffs, touted the efforts of the current and former female Disney employees in reaching the settlement.

“This settlement would not be possible without these courageous women. Because of them, women can expect equitable treatment at Disney in the future,” Webber said in a statement. “I am hopeful the court will move swiftly to approve the settlement, so these hard-working women can move forward with confidence that best practices will be used and unencumbered by further litigation.”