Disneyland will not be required to adhere to an Anaheim ballot measure that mandated an increase in hospitality workers’ pay to at least $18 an hour by 2022.
In 2018, Anaheim voters approved the initiative, Measure L, requiring local hospitality businesses receiving subsidies from the city to raise wages progressively through 2022. Five Disneyland resort workers sued in 2019, claiming Measure L applied to the Walt Disney Company, but that the entertainment giant failed to comply.
Plaintiffs said 1996 agreements between the City of Anaheim and Disney to use hotel taxes to pay debt on a parking structure for Disneyland park goers was a subsidy compelling the company to comply with Measure L.
Orange County Superior Court Judge William D. Claster ruled Thursday that while Disney benefitted from the 1996 agreements, those contracts did not constitute a tax rebate or subsidy as defined under the ballot measure. The ruling also applied to contractors including Sodexo and SodexoMagic, which operate restaurants and coffee shops in Disney resorts.
Before the 2018 measure hit the ballot box, Disney canceled tax incentive agreements with Anaheim that might have required it to comply with Measure L.
Mike Lyster, spokesperson for the City of Anaheim said in a statement, “While we never want to see a dispute like this play out in court, we appreciate the judge’s determination. It validates what we already knew and have said—the city of Anaheim does not provide any rebate or subsidy to Disney.”
Lyster went on to characterize the 1996 agreements as a “public-private partnership” that has “been a great return on investment for our city.”
KNX 1070 has reached out to attorneys for the plaintiffs in the Measure L lawsuit to inquire as to whether they would be pursuing an appeal. They did not respond at the time of publication.
This is a developing story.
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