McDonald's Settles Workers' Lawsuit -- WSJ

By Patrick Thomas 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (November 26, 2019).

McDonald's Corp. agreed to pay $26 million to settle a long-running labor dispute over allegations that the fast-food giant underpaid staff in certain California restaurants.

Several McDonald's workers sued the company in 2013 for a variety of labor violations, including using a timekeeping system that prevented workers from qualifying for overtime pay. The class-action suit included tens of thousands of McDonald's cooks and cashiers in corporate-run stores across California.

The allegations included workers being forced to clock out during times when restaurants were quiet and barred from taking breaks. Workers also claimed that they bore the cost of buying and cleaning uniforms.

McDonald's denied any wrongdoing as part of the settlement, which applies only to California.

"While we continue to believe our employment practices comply with the California Labor Code, we have decided to resolve this lawsuit filed back in early 2013," McDonald's said.

The company also said it regularly adds training and resources to its corporate-owned restaurants to promote compliance with labor laws.

As part of the settlement, McDonald's agreed to permit workers to leave the restaurant during their meal periods and no longer dictate that workers take rest breaks only at the start of their shift. It also promised to maintain detailed electronic time records and provide additional uniforms to crew members.

McDonald's has faced a string of employee issues at its U.S. restaurants this year. Labor organizers and some lawmakers have called on the company to address workplace harassment allegations and raise its minimum wage to $15 an hour chainwide. The federal hourly minimum is currently $7.25.

Earlier this month, the American Civil Liberties Union and a group of workers from Michigan accused the chain in a lawsuit of not properly handling allegations of sexual harassment at one of its restaurants.

A group of Chicago-area workers sued the company last week, claiming that changes to store design made them more vulnerable to assault.

McDonald's says it takes its responsibility to provide a safe workplace environment seriously and, along with its franchisees, continues to invest in training programs that bolster the safety of its customers and employees.

The company has said it implemented antiharassment training at all of its corporate-owned restaurants.

Write to Patrick Thomas at [e-mail]

(END) Dow Jones Newswires

November 26, 2019 02:47 ET (07:47 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.