Disney employees file suit after being asked to return following project cancellation – The UBJ – United Business Journal

Walt Disney Company employees Maria De La Cruz and George Fong filed a lawsuit against their employer, alleging that Disney moved their jobs from California to Florida under false pretenses, only to later cancel the project. This lawsuit highlights a controversial issue involving company promises, employee relocation, and resulting financial and emotional distress.

The lawsuit, filed in California Superior Court, claims Disney announced plans in 2021 to relocate approximately 2,000 roles from California to Florida. Employees were told that those who refused to move risked losing their jobs. The move was linked to Disney’s ambitious plans to build a billion-dollar office complex in Lake Nona, Florida. According to the complaint, Disney assured employees of the longevity and necessity of this decision.

However, things took a dramatic turn in May 2023 when CEO Bob Iger took over the helm following the departure of Bob Chapek. Under new management and due to changing business conditions, Disney abruptly canceled the Lake Nona project. The move left relocated employees like De La Cruz and Fong in a precarious position, having uprooted their lives based on Disney’s now-defunct plans.

The plaintiffs claim they suffered significant financial losses as a result of Disney’s actions. Fong, a creative director, sold his childhood home in Los Angeles to move to Florida, only to find himself forced to return to California shortly after. His Florida property, put up for sale twice, apparently failed to attract buyers due to Disney’s sudden change of heart. Similarly, De La Cruz, vice president of product design, sold her home in Altadena to move her family to Florida, only to be faced with the prospect of returning to California.

The lawsuit accuses Disney of misrepresentation and concealment, alleging the company failed to disclose its true intentions regarding the Lake Nona project. The plaintiffs seek unspecified damages for financial hardship, emotional distress and disruption caused to their lives.

Disney’s ownership of the 60-acre land at Lake Nona, despite the canceled project, adds another layer of complexity to the matter. The company responsible for developing the land has confirmed Disney’s continued ownership, raising questions about Disney’s future plans for the site.

This legal conflict highlights broader issues regarding corporate responsibility, employee welfare and the enforceability of promises made by employers in the context of job offshoring. As the case progresses, it will likely spark discussions about employee rights in such situations and the ethical considerations related to corporate decisions that have such a profound impact on workers’ lives.

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