Disney Faces Largest-Ever Certified Class Action Lawsuit Alleging Gender Pay Disparities

In a significant development on Friday, a judge certified a class action lawsuit against Disney, marking it as the largest-ever case under California’s Equal Pay Act. The lawsuit alleges that Disney systematically paid around 9,000 women less than their male counterparts, a violation of the state law prohibiting gender-based pay discrimination for substantially similar work.

The ruling, delivered by Judge Elihu M. Berle, comes after four years of litigation, with Lori Andrus, the attorney representing the plaintiffs, expressing satisfaction outside the downtown Los Angeles courtroom. Andrus accused Disney of gaslighting the affected women, emphasizing their dedication to their jobs and the brand but demanding respect and fair treatment in the workplace.

Despite the judge’s certification, Disney expressed disappointment in a written statement. A company spokesperson stated, “We are disappointed with the court’s ruling as to the Equal Pay Act claims and are considering our options.”

Disney’s defense argued that the case would be unmanageable due to its sprawling nature. Felicia Davis, Disney’s attorney, contended that comparing salaries across thousands of job groups reflected decentralized decisions made by numerous managers. She highlighted the diversity of job titles, industries, and locations within Disney’s operations, asserting that these differences made the comparison of roles and pay challenging.

The certified class includes female Disney employees in California below the level of vice president, working in non-union positions since April 1, 2015, and assigned to a job family and level. It spans various Disney units, excluding Pixar, ESPN, Hulu, Fox, or FX.

Davis argued that the class members’ roles were too diverse to merit certification, emphasizing differences in segments, business areas, locations, and reporting structures. The judge, however, challenged this argument, questioning Disney’s ability to categorize pay grade levels efficiently.

Both sides have engaged experts to prove or disprove a gender pay gap, with Andrus claiming that starting pay for women across the class is 2% lower than for men.

Simultaneously, Andrus pursued a parallel claim under the state’s Fair Employment and Housing Act, aiming to cover a broader group of 12,000 women. However, Judge Berle denied class certification for that claim, citing Disney managers’ discretion in using pay history as a factor until 2017.

A status conference is scheduled for February 9, with the trial expected to take place before October, according to Andrus. The case raises broader questions about gender pay disparities within one of the world’s most iconic entertainment companies.