Disney Faces Lawsuit from Employees Over Canceled Move from California to Florida

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ICARO Media Group
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20/06/2024 22h11

In a surprising turn of events, current and former employees of Disney have filed a class-action lawsuit against the company over the canceled cross-country move from California to Florida. The lawsuit, filed on Tuesday in Los Angeles County Superior Court, alleges that Disney fraudulently induced employees to relocate, causing significant disruption and financial hardship.

The planned move, announced by then-CEO Bob Chapek in 2021, aimed to shift Imagineering and other operations to the new $1 billion Lake Nona campus. The decision was driven by cost-saving measures, as Florida offers lower worker costs and tax credits compared to California. However, the proposed relocation faced strong resistance from employees, especially after the introduction of Florida's controversial "Don't Say Gay" bill.

The planned move, initially scheduled for completion in 2023 but later delayed to 2026, was ultimately canceled in May 2023 due to changing business conditions and new leadership. Bob Iger returned as CEO, and Florida Governor Ron DeSantis assumed control of Disney's Reedy Creek Improvement District.

According to the lawsuit, current employees Maria De La Cruz and George Fong claim that they were led to believe their jobs would be at risk if they declined the move to Florida. The employees were given 90 days to consider the decision, and both De La Cruz and Fong agreed to relocate in November 2021.

In a heartbreaking turn of events, De La Cruz and Fong had already sold their homes in Altadena and Los Angeles, respectively, before the project was abruptly canceled. The lawsuit highlights the inadequacy of the compensation packages offered to affected employees, given the soaring prices of Los Angeles homes since 2022.

Disney, upon canceling the relocation, promised to assist individual employees who had already moved to Florida by facilitating their return to California. However, the plaintiffs argue that the compensation offered was insufficient to cover the losses incurred during the upheaval, forcing them to make significant compromises in their housing situations upon returning to California.

The lawsuit seeks unspecified punitive damages and aims to represent all current and former California Disney employees who relocated to Florida as a result of the Lake Nona Project.

As of now, a Disney spokesperson has not responded to the Los Angeles Times' request for comment regarding the lawsuit.

This legal action further adds to the challenges faced by Disney, which has been navigating the impacts of the COVID-19 pandemic on its operations and facing growing scrutiny over its labor practices. The outcome of the lawsuit may have significant implications for both the affected employees and the company as a whole.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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