Disney has agreed to pay $43 million to settle a lawsuit alleging gender-based pay disparities among its employees. The settlement stems from a 2019 lawsuit filed by a female employee who discovered that male counterparts with the same job title were earning significantly more than her. The lawsuit eventually grew to include around 9,000 women, both current and former employees.
While Disney denied any wrongdoing, the settlement requires the company to hire a labor economist to analyze pay equity among full-time, non-union California employees below the vice president level for three years. Any identified disparities are to be rectified as part of the agreement.
The plaintiffs accused Disney of perpetuating pay discrepancies by not accounting for gender pay disparities from previous employment when determining starting salaries. Disney, however, stated that a recent review of its pay policies showed that women earned 99.4% of what men earned, indicating a relatively small pay gap.
Despite Disney's assertion that pay decisions are made by numerous managers across various divisions, the settlement agreement still needs judicial approval. The case has drawn attention to the issue of gender-based pay disparities and the importance of ensuring fair compensation practices in the workplace.
