Disney employees are suing their employer, alleging that the company fraudulently induced them to relocate from California to a new office park in Florida, only for the new park project to be canceled amidst a dispute between Disney and Florida Governor Ron DeSantis.
The entertainment giant’s leaders informed California employees in July 2021 that most of the state’s white-collar employees would be relocated to the new park in Orlando, Florida, to integrate different teams and enhance collaboration.
At that time, the company announced that up to 2000 employees from the digital technology, finance, and product development departments would be transferred to the new park located about 20 miles (30 kilometers) from the Walt Disney World Resort.
According to a collective lawsuit filed earlier this week, many employees were unwilling to relocate because of their longstanding ties to Southern California and concerns about uprooting their families. However, Disney promised these employees a state-of-the-art and concentrated work environment in Central Florida, along with higher economic resilience to incentivize relocation.
The lawsuit states, “In short, Disney encouraged employees to relocate by combining rewards and penalties. Employees could choose to move to Florida for an improved life, or choose not to relocate and be terminated by Disney.”
By the end of 2021, due to significant employee resistance to relocation, the company informed them that the relocation plan was temporarily suspended. Meanwhile, a group of employees, including lead plaintiffs Maria De La Cruz and George Fong, who had decided to relocate, sold their homes in California and purchased houses in Central Florida.
However, by June 2022, Disney leadership informed California employees that the opening date of the Orlando new park would be delayed, allowing them to postpone relocation until 2026 but still encouraging them to move before 2024.
By this time, disputes had already arisen between DeSantis and Disney. With the help of the Florida Legislature, DeSantis altered the jurisdictional rules over the Disney World area and appointed his own board members in early 2023.
In May 2023, Disney informed employees that the $1 billion park project in Orlando had been canceled, and workers who had already relocated to Florida could move back to California if they chose to do so.
Following Disney’s decision to halt construction on the Orlando park, property prices around the park dropped, while housing prices in California continued to rise, along with mortgage interest rates in 2023. Fong and De La Cruz have already moved back to or are planning to move back to California, and they are now seeking Disney to provide economic and punitive compensation.
“The similar individuals who returned to California were forced to purchase or rent less-than-ideal housing,” the lawsuit alleges.
Disney did not respond to Reuters’ request for comment sent via email last Friday.