McDonald’s Corp (NYSE: MCD) has reached a $26 million settlement agreement for a class-action lawsuit brought against it in 2013 in California. The lawsuit accused McDonald’s of failing to pay over 38,000 minimum wages and overtime as well as not providing meal and rest breaks.
McDonald’s settles a class-action suit
This is the largest class-action lawsuit against the company and it will compensate thousands of cashiers and cooks in California. However, the agreement requires approval from a Los Angeles County Superior Court judge before execution. The suit that has lasted close to seven years brought several allegations against the fast-food giant.
Besides failing to pay the workers minimum and overtime wages other aspects involved workers working overnight shifts. The shifts could begin on one day and end the following day but accounted hours were only those when the shift started. This was a way the company avoided paying overtime.
At first, it was only one plaintiff suing the company but three others joined to represent the class of cashiers and cook. In a statement, McDonald’s indicated that as an employer it takes its responsibility seriously and it advocates for fair and just treatment of employees.
The company said that it believes that its employment practices are in line with California Labour Code. Nevertheless, it had decided to resolve the long-running lawsuit. Further, the company stated that with the settlement all parties had reached an acceptable resolution.
McDonald’s to compensate for unpaid perks
According to the agreement the company will compensate for back wages, missed rest and meal breaks, unpaid overtime hours, shortened or late and uncompensated time as well as uniform maintenance. The settlement also calls for period training of crew members and managers at corporate-owned locations.
Similarly, there are pragmatic conditions that will new employees to be informed of rules and options covering rest breaks and meal periods. This includes mostly when they don’t need to stay on-site. Also, McDonald’s should offer crew members new uniforms at no cost once their outfits wear out.