Disneyland Resort in Anaheim, California, has been hit with a class-action lawsuit by five workers, who claim that the resort is failing to pay "living wage" hourly rates to its workforce.
The dispute centres around a ballot measure (Measure L) that Anaheim voters backed in 2018, in which any hospitality business located in Anaheim's resort district that benefits from a city subsidy must pay workers a minimum of US$15 per hour (€13.50, £11.40). Measure L was also backed by Unite Here Local 11, which represents hotel and restaurant workers at the resort.
The bone of contention, however, is whether tax dollars from the city to pay off construction bonds on a US$108m (€97.4m, £82m) six-storey parking garage on the resort constitute a subsidy, thereby triggering the requirement to pay the 15 dollar rate. According to a report in the
LA Times, most of those tax dollars come from Disney, but some also come from bed taxes from hotels throughout the city.
"Our position is that this is clearly a subsidy," said Randy Renick, an attorney for one of the five plaintiffs.
However, Disneyland spokeswoman Liz Jaeger countered: "We have yet to see the lawsuit, but the union coalition is well aware that the city attorney has previously looked at the issue and clearly stated that Measure L does not apply to the Disneyland Resort."
This relates to an opinion given by Anaheim City attorney Robert Fabela in October 2018, which said that "although there are many moving parts to the bond transaction, it does not appear to incorporate a direct city subsidy".
The lawsuit, which has been filed in Orange County Superior Court in Santa Ana, names subcontractors and lessees for Disney, Sodexo and SodexoMagic, which operate restaurants and coffee shops in the resort. It also states that more than 400 current and former resort employees could be parties to the action.
What must first be determined by the judge is whether the case can proceed as a class-action lawsuit, and the
LA Times said that the court may also have to decide upon the definition of a city subsidy, based upon the intent of those who brought Measure L to voters last year. If the lawsuit does succeed, it could mean that the workers are owed millions of dollars in back wages.
The newspaper reports that before Measure L was voted on last year, Disneyland Resort requested that Anaheim nullify two tax break deals it had with the city, which the city council agreed to do. These tax breaks were "causing strife with the city", said the newspaper, and it added that, the deals having been nullified, "it appeared that Measure L would no longer apply to the Disneyland Resort".
