McDonald’s settles with franchise workers for $3.75 million in wage theft lawsuit

LauraClawson

McDonald’s is still insisting it isn’t a joint employer of workers in franchise restaurants, but even so, it’s paying out millions to settle a lawsuit over labor law violations by a franchisee:

In a filing in U.S. district court in San Francisco on Friday, lawyers representing about 800 employees at five restaurants owned by a single franchisee said Illinois-based McDonald’s would pay the workers $1.75 million in back pay and damages and $2 million in legal fees. […]

The 2014 lawsuit claimed McDonald’s and the franchisee, Smith Family LP, violated California law by failing to pay overtime, keep accurate pay records and reimburse workers for time spent cleaning uniforms. The franchisee previously settled the claims for $700,000.

gettyimages-534355124

McDonald’s exerts tight control over how its franchisees do things it cares about. That happens not to include little things like obeying labor laws—but because McDonald’s control over how its franchisees do business is so well established, the National Labor Relations Board is moving toward treating McDonald’s as a joint employer. This settlement doesn’t settle that question, but at least these workers are getting a measure of justice.

This article originally appeared at DailyKOS.com on October 31, 2016. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

 

Facebook
Twitter
LinkedIn
Pinterest
Correo electrónico
Tracking image for JustAnswer widget
Tracking image for JustAnswer widget
Ir arriba

Madeline Messa

Madeline Messa es estudiante de tercer año en la Facultad de Derecho de la Universidad de Siracusa. Se licenció en Periodismo en Penn State. Con su investigación jurídica y la redacción de Workplace Fairness, se esfuerza por dotar a las personas de la información que necesitan para ser su mejor defensor.