McDonald’s pays $26 million to settle wage theft suit
McDonald’s is paying $26 million to settle a class action lawsuit over wage theft. It’s the latest development in a string of conflicts between the major restaurant chain and its employees.
The settlement puts an end to a multi-year legal battle between the company and California workers who alleged that McDonald’s was skirting overtime payment laws and denying employees timely breaks, among other things. About 38,000 people are represented in the suit, according to a court filing obtained by CNN from the Fight for $15, which advocates for workers’ rights.
In 2013, Maria Sanchez and others filed a suit against corporate-owned McDonald’s restaurants in the state, saying that as far back as 2009 McDonald’s failed to pay overtime to employees who worked more than eight hours during a 24-hour period. McDonald’s actions violated state law, the suit claimed.
McDonald’s workers strike during nationwide ‘Fight for $15 Day of Disruption’ protests on November 29, 2016 in Los Angeles, California.
“While we continue to believe our employment practices comply with the California Labor Code, we have decided to resolve this lawsuit,” McDonald’s responded in a statement.
The company added that “we take our responsibility as an employer seriously and are deeply committed to the fair treatment of all of our employees,” noting that it “continuously” rolls out trainings and offers resources at company-owned restaurants to “promote continued compliance with all wage and hour laws.”
The vast majority of McDonald’s locations are owned and operated by franchisees. Those locations are encouraged to follow the same rules and procedures as corporate-owned locations, but are not required to do so…….read more