McDonald’s Corp. has agreed to pay $3.75 million to settle wage-and-hour claims brought against the company and its franchisees by a class of about 800 restaurant workers at franchisee-owned establishments in California.
The Oct. 28 settlement, which still needs approval from the U.S. District Court for the Northern District of California, comes amid growing attempts to hold McDonald’s liable for alleged labor violations of its franchisees as a “joint employer.” The company would pay $1.75 million to plaintiffs in combined back pay, liquidated damages, and other penalties, with some of that cash going to a California labor enforcement agency to fund labor law enforcement and education. McDonald’s would also pay $2 million to cover attorney fees and litigation expenses.
