Tens of thousands of Disneyland employees are starting to get their settlement checks ahead of the winter holidays from a 2019 class action lawsuit that alleged Disney was not following a voter-approved minimum wage law in Anaheim.

The pay checks are rolling out months after Orange County Superior Court Judge William Claster approved a $233 million settlement in September that attorneys representing the workers have described as the largest wage theft settlement in California history.

Jenna Thompson, a spokeswoman for United Food and Commercial Workers Local 324 which represents 23,000 workers including some at the theme park and Disneyland resort, said in a Tuesday email the settlement was the result of workers and their unions.

“It means that companies, even global powerhouses like Disney, are accountable to their workers to follow the law. It would not have been possible without cast members’ willingness to fight for what they deserve from Disney,” she wrote.

Disney representatives did not respond to email questions Tuesday on the payments being rolled out.

The approved settlement means that over 51,000 workers will get backpay with 10% interest for the money they were supposed to get since the lawsuit kicked off 6 years ago.

“Our hope is that it makes a significant impact on improving the life quality, the health and welfare of the Disney workers,” said Randy Renick, an attorney representing the workers in the case, in a Tuesday phone interview.

“They are all very dedicated to their job and work extremely hard and tend to work for lower wages and so the six years of back wages here should make a significant impact in improving not just their lives, but also their upcoming holidays.”

Workers will also get the 401(k) contributions they would have made plus 10% interest and other penalty payments as part of the approved settlement.

The lawsuit stems from a law approved in 2018 by Anaheim voters – dubbed Measure L – which requires that all city subsidized businesses pay their workers a minimum wage of at least $20 an hour as of 2022 and give them a 2% raise annually in perpetuity.

In the past, Disney, which spends heavily on local elections opposed Measure L, argued the entertainment juggernaut had not received any subsidies from the city and refused to comply with the law.

In 2023, a panel of appellate court judges disagreed.

Disney workers stand for a photo during a union rally on the 69th anniversary of Disneyland park on July 17, 2024. Credit: JULIE LEOPO, Voice of OC

Renick said in a Tuesday text message that the average total payment for the over 51,000 employees in the case is roughly $3,500 and the money will continue to be doled out in the coming weeks.

In the Tuesday email, Thompson said a third-party administrator for the settlement is reaching out to the workers and once they respond they can expect an electronic payment in a couple of days or a check in a couple of weeks.

She added the amount an employee receives varies – with some getting almost $10,000 and others getting a couple hundred dollars.

“Anything helps around the holidays, but our members are looking forward to doing a bit more this year than in previous years, and putting the settlement into savings,” Thompson wrote in a Tuesday email.

“Cast members often work paycheck to paycheck, so receiving $10,000 is a significant amount.”

Disney initially agreed to the settlement last December on the heels of approving a new contract agreement with four different unions representing 14,000 workers and years after federal agents alleged Disneyland Resort interests held undue influence over city hall.

[Read: Disney Settles Wage-Theft Lawsuit for $233 Million]

The backpay isn’t the only relief some workers may be getting as the new year approaches.

Separately, Anaheim leaders are redirecting a portion of tourism tax dollars – intended to market the Disneyland Resort – to help house resort workers.

City officials are also beginning to lean more on resort interests to help address the city’s affordable housing needs.

[Read: Anaheim Tourism Dollars to Help House Disneyland Resort Workers]

At the same time, officials in the city home to “happiest place on earth” shelved a proposal for a Disneyland gate and parking tax measure that would have potentially generated up to $164 million annually.

They iced the proposal after they struggled filling a budget gap tens of millions of dollars deep earlier this year.

Hosam Elattar is a Voice of OC reporter and corps member with Report for America, a GroundTruth initiative. Contact him at helattar@voiceofoc.org or on Twitter @ElattarHosam.

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