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A class action lawsuit filed by 25,000 Disneyland cast members has been dismissed by Orange County Superior Court Judge William Claster, who ruled that the California theme park will not be required to raise its minimum wage in compliance with a measure passed by Anaheim voters in 2018.

Foxbusiness reports that the lawsuit, filed in 2019, accused Disney of failing to comply with “Measure L”, which requires any private business who receives city subsidies to increase their minimum wage to $18 per hour by 2022. As part of the living wage ordinance, the minimum wage increased to $15 per hour in 2019 and was set to increase in $1 increments on an annual basis through 2022, plus subsequent cost-of-living increases.

The suit claims that Disney took a city subsidy when it allowed the city of Anaheim to take out a $550 million municipal bond to finance the construction of the Mickey & Friends parking garage. Disney, who operates and keeps all of the revenue associated with the garage, will own it once the municipal bond is repaid.

“All this was paid for with what Disney would have otherwise paid in taxes,” the suit states. “Disney got a rebate of the best kind: it got its taxes back before it paid them.”

While acknowledging that Disney receives a “significant benefit” from the city, Claster ruled that there is “no evidence that the finance agreement somehow lessens their tax obligation” and does not technically create a city subsidy.

“Whether the Disney defendants received a ‘public subsidy’ in a general sense is a different question from whether they received or have a right to receive a city subsidy as defined, i.e., a rebate of taxes (in the form of a refund, abatement, exemption, etc.),” Claster explained. “Had the Disney defendants raised construction funds privately, they would have had to make both tax payments and debt service payments. The bond issuance here was structured so that they received a portion of the proceeds of the bond issuance, but only have to make tax payments in return. Their taxes go into the City’s general fund, and money from the general fund ultimately services the debt (after a series of transactions).”

Randy Renick, the attorney representing Disneyland cast told Variety that the employees would appeal Claster’s decision.

The ruling comes as negotiations between Disneyland and Teamsters Local 495, the union that represents Disney’s attractions cast members, fell apart in late October. Attractions cast members, who are currently paid $15.50 per hour, are fighting for an increase to $17 per hour and said that Disney is “unwilling to provide an increase in wages over 3% ($0.46).”

“Working for the Mouse”, a survey of 5,000 Disneyland cast members in 2018 by Occidental College and the Economic Roundtable, found that 11% of respondents reported experiencing homelessness in the previous two years, while 68% were food insecure and 73% said they did not earn enough for basic living expenses. Approximately 64% of respondents said at the time that Disneyland Resort’s scheduling made it difficult to find a second job.