Anticouni & Ricotta | Leaders In Employment Litigation Serving Clients Throughout California.

How did McDonald’s reach a wage-theft settlement

On Behalf of | Oct 26, 2020 | Wage And Hour Claims |

McDonald’s employees will soon receive something extra. A check for $3,900 is headed to some employees, and the funds aren’t part of the fast food giant’s generosity. McDonald’s recently settled a wage-theft case, leading the company to pay out $26 million. The move could affect upwards of 34,000 workers in California.

McDonald’s Stumbles and Finds Itself in a Lawsuit

A 2013 lawsuit made several allegations about McDonald’s. Namely, the company did not give workers adequate breaks nor provide overtime pay. The lawsuit even accused McDonald’s of not paying salaries on time.

Public statements indicate McDonald’s isn’t admitting to any wrongdoing. Company-approved commentary suggests the company did earnestly attempt to follow California labor law. Based on the direction the litigated headed, McDonald’s decided to settle. The company wished to avoid further costly litigation and a possibly larger judgment. The litigation went so far as the California Supreme Court, where McDonald’s chose to settle. The Supreme Court approved the settlement.

Workers and Their Settlement Payout

Not all the 34,000 employees will receive a substantial payment. The average payment lists in the low $300 range. Around $3,928 reflects the high payment to some workers. Regardless of the amount, the workers might feel thrilled about receiving the compensation owed to them.

Perhaps the top news coming out of the settlement would be company policy changes. The settlement agreement requires McDonald’s to alter policies related to rest breaks, overtime, and more. The policy changes may decrease the potential for wage-theft claims in the future. Time will reveal whether McDonald’s and its employees find themselves involved in more problems and litigation. After announcing the settlement, McDonald’s released a statement about a commitment to “do right” for its employees.

Wage and hour litigation could involve significant negotiations for a settlement. Clients might want to discuss litigation and settlement plans with their attorneys.

FindLaw Network