A California state court judge approved a $43 million settlement in a class action lawsuit in which female workers alleged a pay gap based on gender. According to the workers, Disney paid female workers “tens of thousands of dollars less than their male counterparts”, bypassed women for promotions, and assigned them additional work tasks without additional pay. The case is Rasmussen, et al. v. The Walt Disney Co., pending in the California Superior Court, Los Angeles County.
Despite the settlement, Disney denied any unlawful employment policies and practices. In addition to the monetary settlement, Disney will have an outside labor economist analyze pay equity for certain positions for three years, which could result in the reclassification of some positions at the company.
Workers filed the lawsuit almost six years ago. In their complaint, the workers alleged violations of the California Equal Pay Act.
The Disney settlement highlights an increased focus on pay equity and pay transparency. However, many businesses are not adequately prepared for the scrutiny that accompanies pay transparency. In a recent worldwide Aon plc survey, 19% of organizations reported that they are ready for new mandatory pay transparency legislation. Another 58% indicated that they are in the process of preparing for pay transparency laws. Meanwhile, in North America, 25% of businesses reported readiness for pay transparency, with another 59% of businesses preparing for compliance. Currently, less than one in five U.S. companies has an established pay transparency strategy.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
