McDonald’s Settles UO Lawsuit with Workers for $3.75 Million

McDonald’s Settles Unpaid Overtime Lawsuit with California Workers for $3.75 Million

LOS ANGELES — For the first time ever, McDonald’s agreed to settle wage and labor class action claims with franchise workers claiming the global fast food chain is a joint employer and should be held responsible for paying back unpaid overtime and other wages. The settlement is a significant victory for fast food workers as groups of hard working employees all across the country have begun to stand up for better wages and accountability from their employer.

The suit, filed in U.S. District Court in San Francisco, requires a final sign off from a federal judge before the $3.75 settlement can be divided amongst the plaintiffs. Approximately 800 employees from five franchises across the state are expected to share in the award and have their attorney’s fees covered by the settlement as well.

The plaintiffs in the suit already settled with the franchise owner last year for $700,000 in back overtime but the workers continued to press their case with the corporation arguing McDonald’s was a joint employer with the franchise owner. Claims centered around the restaurant using and inaccurate record keeping system designed to suppress overtime wages and keep payroll down.

Defendants Agree to Install New Payroll Software

As part of the latest settlement, McDonald’s agreed to install and train the franchise owner on corporate payroll software to help ensure the employer’s compliance with California’s wage and labor laws which provide robust overtime benefits for workers in the state. These types of injunctions are not uncommon in unpaid overtime lawsuits against large employers and are important because they help prevent future wage theft.

Under California law, workers are entitled to a an uninterrupted 30-minute meal break immediately following their fifth hour on the job and must be compensated with an additional hour of regular pay if the meal break is unavailable. Furthermore, workers are also eligible for overtime pay when they work more than eight hours in a shift, an aspect of the law often overlooked by employers.

Fast Food Overtime Pay Lawsuits

Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you believe that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.

Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.

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