In a recent legal battle, the California Supreme Court refused to hear an appeal from Disney regarding the applicability of an Anaheim wage law to its lowest-paid theme park workers. This decision marks a significant shift in the relationship between the city of Anaheim and the Walt Disney Company, which has long enjoyed a favorable position in the city.
The Wage Law Dispute
The dispute began in 2018 when Anaheim voters passed a law requiring a $15 minimum wage for companies in the city’s resort area that benefited from “tax rebate” agreements with the city. Disney asked the city to dissolve a 45-year gate tax shield and a $267-million bed-tax break for a luxury hotel project that never materialized. Anaheim’s city attorney initially stated that the law wouldn’t apply to Disney since the agreements were canceled.
However, a class-action lawsuit representing 25,000 theme park workers filed against Disney in December 2019 argued otherwise. The state’s 4th District Court of Appeal ordered raises and back pay for Disney employees, known as cast members, over the summer. With the California Supreme Court’s refusal to hear Disney’s appeal, the only remaining issue is the amount of damages.
A Changing Relationship
Disney’s influence in Anaheim has been significant for decades, with the company enjoying a close relationship with local politicians. However, recent events, such as an independent corruption investigation revealing deeper ties between Disney and Anaheim politicians, have led to increased scrutiny of the company’s influence in the city.
Anaheim has recently hosted a forum on campaign finance reform, aiming to curb Disney’s influence on the city council and local politics. This shift in the city’s stance towards Disney could have long-term implications for their relationship and the company’s operations in Anaheim.
FAQ
What is the Anaheim wage law?
The Anaheim wage law is a regulation passed in 2018 that requires a $15 minimum wage for companies in the city’s resort area that have “tax rebate” agreements with the city.
What is the dispute between Disney and the city of Anaheim?
The dispute centers around whether the Anaheim wage law applies to Disney’s lowest-paid theme park workers. Disney argued that the law doesn’t apply to them since they dissolved certain tax agreements with the city, while a class-action lawsuit representing 25,000 theme park workers claimed otherwise.
What is the outcome of the legal battle?
The California Supreme Court refused to hear Disney’s appeal, effectively requiring the company to comply with the wage law and provide raises and back pay for its lowest-paid theme park workers.
How is the relationship between Disney and Anaheim changing?
The city of Anaheim is taking steps to curb Disney’s influence in local politics, hosting a forum on campaign finance reform and scrutinizing the company’s ties to local politicians. This marks a shift in the city’s stance towards Disney and could have long-term implications for their relationship.
Glossary
– Tax rebate: A refund on taxes paid by a company, often provided as an incentive for certain business activities or investments.
– Gate tax shield: A protection against taxes levied on entry fees or ticket sales for a specific business or venue.
– Bed-tax break: A reduction or exemption from taxes imposed on hotel room stays, often provided as an incentive for hotel development or expansion.
