Disney has agreed to pay $43 million to close the books on a lawsuit alleging that for nearly a decade, the company has practiced discriminatory pay between female employees and their male counterparts employed in similar jobs. The lawsuit filed in 2019 by LaRonda Rasmussen against the entertainment behemoth argued that there were systemic internal differences between men and women in pay. It went on to reveal that Rasmussen, who worked in Disney, ‘discovered’ enormous disparities between her pay and that of male work colleagues having the same job title; one example was a man who, despite having fewer years of experience than she, earned $20,000 more each year.
The case caught on immediately: approximately 9,000 current and former female employees joined the class-action lawsuit. Allegations were made against Disney by the plaintiffs that the company established a pattern of paying less for similar positions for women than men, thus keeping in place wage gender gaps that began in previous employments. Disney was accused of never paying attention to this discrepancy or correcting it at the employment of women. The case is just one of the things raised about pay inequities against gender.
Throughout the case, Disney denied the very allegations and has not admitted liability as part of the settlement. A Disney spokesperson stated, “Disney remains focused on our efforts to ensure equal and fair pay practices,” adding that the company is pleased to have resolved the matter.
Under the terms of the settlement, Disney has agreed to hire an independent labor economist to analyze pay equity among full-time, non-union employees in California who hold positions below the vice president level. This analysis will take place over three years, during which the company is required to address any pay disparities identified. The plaintiffs’ legal team praised this step, citing it as a critical measure to ensure future fairness in compensation practices.
Disney has agreed to pay $43 million to close the books on a lawsuit alleging that for nearly a decade, the company has practiced discriminatory pay between female employees and their male counterparts employed in similar jobs. In the lawsuit filed in 2019, LaRonda Rasmussen against the entertainment behemoth argued that there were systemic internal differences between men and women in pay. It went on to reveal that Rasmussen, who worked in Disney, ‘discovered’ enormous disparities between her pay and that of male work colleagues having the same job title; one example was a man who, despite having fewer years of experience than she, earned $20,000 more each year.
The case caught on immediately: approximately 9,000 current and former female employees joined the class-action lawsuit. Allegations were made against Disney by the plaintiffs that the company established a pattern of paying less for similar positions for women than men, thus keeping in place wage gender gaps that began in previous employments. Disney was accused of never paying attention to this discrepancy or correcting it at the employment of women. The case is just one of the things raised about pay inequities against gender.
Throughout the case, Disney denied the very allegations and has not admitted liability as part of the settlement. A Disney spokesperson stated, “Disney remains focused on our efforts to ensure equal and fair pay practices,” adding that the company is pleased to have resolved the matter.
Undoubtedly, this has spoiled the ground for enduring gender pay discrepancies in the walls of big corporations, despite vigorous promises from the companies to ensure workplace diversity, equity, and inclusion. As per the legal pundits, the Disney lawsuit may ripen similar actions cutting across other industries as employees continue to step out against the flawed pay and know the legal ones to assert their claims against it.
For Rasmussen and the thousands of women in this case, the settlement is not about money alone; it recognizes something much broader than the healing of the systemic issues they wanted to address. Indeed, it sets the stage for accountability within Disney to ensure pay equity remains a focus going forward.
As they now wait for judicial approval of the settlement, the case contains points regarding needed openness and proactive measures to mitigate pay disparities. By agreeing to a third-party oversight of its pay practices, Disney takes a bold step towards restoring employee trust while cementing its fair commitment within the organization. Yet for all that, the settlement does not amount to an admission of fault; it remains a reminder of the uphill tasks involved in realizing total pay equity in the corporate scene.
