Disneyland workers sue, arguing they deserve a ‘living wage’
Do Disneyland employees make less than a “living wage?”
The Walt Disney Company may soon have to answer whether or not it violated a wage law in California by allegedly paying workers in the theme park less than $15 an hour.
Five Disneyland workers have filed a class-action lawsuit against Disney and its subcontractor Sodexo, claiming that the company failed to pay workers a living wage and didn’t comply with Anaheim’s Living Wage Ordinance, known as Measure L, according to court documents. The wage law passed in November 2018 and requires all hospitality businesses that benefit from city subsidies to pay their workers at least $15 an hour, effective January 2019, according to the city’s website.
In a 1996 agreement, Anaheim gave Disney over $200 million in bonds to help construct the California Adventure theme park and a parking garage, according to the court filing. The workers argue that because Anaheim is using tax dollars to pay off bonds for the garage, Disney is benefiting from city subsidies and is subject to the new law.
Some of the taxes come from hotels in Anaheim, the LA Times reports. Disney gets more than $35 million a year in revenue from the garage and once the bond is paid off, Anaheim has agreed to transfer over ownership of the garage to Disneyland.
Earlier this year after Measure L passed, Anaheim determined that the 1996 agreement doesn’t fall under the definition of a subsidy and that Disneyland was exempt.
“Disneyland does not fall under the new ordinance, per a review by our city attorney with the assistance of outside counsel,” Mike Lyster, city spokesman, told OC Weekly. “Disney does not receive or hold agreements for tax rebates or an entertainment tax policy, which are the key triggers of Measure L.”
Disney agreed.
“We have yet to see the lawsuit, but the union coalition is well aware that the [Anaheim] city attorney has previously looked at the issue and clearly stated that Measure L does not apply to the Disneyland Resort,” Disney spokeswoman Liz Jaeger told the LA Times.
One plaintiff, Kathleen Grace, works as a barista at a Starbucks operated by Sodexo in Disneyland, according to court documents. The suit claims that Grace was not paid adhering to the living wage law and that she makes $14.25 hourly.
“I love Anaheim and that is why I came together with my fellow plaintiffs to make sure that every resort worker gets paid the living wage we deserve,” Grace said during a news conference Monday, the LA Times reports.
The other plaintiffs, Thomas Bray, Regina Delgado, Alicia Grijalva, Javier Terrazas, work for Disney as a bell hop, cashier, makeup artist, and banquet event server, according to the lawsuit. They all earn less than $15 hourly.
In August 2018, Disney stalled plans to build a luxury hotel on the resort and requested that Anaheim cancel a tax rebate agreement that gave $267 million in subsidies for the hotel, OC Weekly reports.
However, some Disney workers continue to argue that their wages are unlawful and that the 1996 deal means the living wage law applies to Disney. They also claim in the lawsuit that Disney didn’t pay them for overtime and violated the California Labor Code.
This story was originally published December 11, 2019 at 12:41 PM with the headline "Disneyland workers sue, arguing they deserve a ‘living wage’."