Disney faces €41m setback over gender pay bias lawsuit
Walt Disney faces significant challenges after being accused of gender pay inequality for identical job roles. The company has agreed to pay €41 million in damages and appoint a paid expert. This is another major crisis that Disney has encountered in recent years.
Walt Disney has agreed to pay €41 million and hire a paid expert following a class-action lawsuit in which female employees accused the company of unequal pay for women.
According to the lawsuit, around 9,000 women employed at Disney over eight years earned €146 million less than men in equivalent positions. This is not the first scandal of this type for Disney, with increasing monthly reports about the company's problematic approach to employees.
LaRonda Rasmussen, the first plaintiff, discovered five years ago that six of her colleagues in similar positions received significantly higher salaries. Despite having less experience, one earned about €19,000 more annually than she did.
Huge scandal at Disney
More current and former female employees joined the lawsuit. Disney attempted to halt the legal proceedings and subsequently challenged the allegations and findings contained in the lawsuit. However, this did not help the company avoid the massive penalty and the ensuing scandal that erupted around Disney after the media highlighted the issue.
An analysis of Disney’s pay data from April 2015 to December 2022 found that women in the same positions earned, on average, about 2% less than men.
As part of the settlement, Disney will not only pay the compensation but also hire an independent expert to analyse the company's pay policy and propose changes to eliminate pay discrimination.
