Disney workers who were forced to relocate from Los Angeles to Florida for a new campus are now suing the company after it abandoned its development plans. The reversal, which impacted about 2,000 employees, came following the return of CEO Bob Iger.
Aborted Plans Cause Major Disruption
The relocation was initially announced in 2021 by then-CEO Bob Chapek and Disney chairman Josh D’Amaro, aimed at utilizing Florida tax credits. However, this decision was met with significant discontent as staff had to move from Southern California.
Lawsuit Filed by Affected Employees
The lawsuit, filed on Tuesday in Los Angeles County Superior Court, claims affected employees sold their homes and moved to Central Florida under the belief they would lose their jobs if they didn’t comply. Plaintiffs Maria De La Cruz and George Fong, sold their homes in 2022 due to these assurances.
Punitive Damages Sought
The plaintiffs are seeking punitive damages, representing all former and current California-based Disney workers who had relocated. The lawsuit highlights the significant personal losses incurred by these employees due to the sudden cancellation of the Lake Nona project.
Cultural and Political Backdrop
The canceled project coincided with Disney’s high-profile legal conflict with Florida Governor Ron DeSantis
. In a related controversy, pundit Max Boot called DeSantis’s words deranged
. Among others, Everett Kelley criticized DeSantis’ aggressive rhetoric towards federal employees as dangerous, disgusting, disgraceful and disqualifying
.
The Broader Impact on Employees
Following Disney’s announcement in May 2023 about not proceeding with the campus, many workers faced financial setbacks. Mr. Fong described selling his family home for relocation as particularly painful. Consequently, home prices fell in Orlando while those in Los Angeles rose amidst higher interest rates.
Continuing Efforts and Individual Adjustments
Despite notable cost-cutting efforts at Disney, Chairman Josh D’Amaro continued his engagement with cast members during his visits to Walt Disney World to hear their experiences. His role underscores ongoing attempts to manage staff transitions and compensations.
An Unfolding Legal Battle
The lawsuit against Disney underscores significant employee grievances following substantial relocations and seeks a broader representation for those impacted by the abrupt policy change.
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