Disney faces $43.3M penalty over gender pay gap allegations
Walt Disney faces significant trouble after being accused of gender pay inequality for employees in comparable positions. The company has agreed to pay $43.3 million in damages and hire a paid expert. This marks another major crisis for Disney in recent years.
8:53 AM EST, November 26, 2024
Walt Disney has agreed to pay $43.3 million and hire a paid expert following a class-action lawsuit filed by female employees who accused the company of unequal pay, as the Polish Press Agency reported.
According to the lawsuit, around 9,000 women employed at Disney earned $150 million less than men in equivalent positions over eight years. This isn't Disney's first scandal, as reports about the company's problematic approach to its employees continue to surface.
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 of them earned $20,000 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 contested the allegations and findings within the lawsuit. However, these efforts did not prevent the company from facing a massive penalty, and the scandal erupted 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 analyze the company’s pay policy and propose changes to eliminate pay discrimination.
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