McDonald’s Reaches $26M Wage Settlement for Hourly Workers

McDonald’s has agreed to resolve a class action lawsuit that alleged the fast food giant failed to properly pay its workers at corporate California locations.  The lawsuit claimed McDonald’s systematically underpaid its hourly employees by requiring them to work off-the-clock, failing to provide them overtime pay, and adjusting time records to show fewer hours worked. A settlement of $26 million was reached to resolve several wage claims and will benefit thousands of employees.

Even though McDonald’s does not admit any wrongdoing, both sides regard this settlement as a “mutually acceptable resolution.” As part of the agreement, these corporate McDonald’s locations must revise their time keeping practices and provide training on wage and hour policies for its managers and hourly employees. The court is set to review and approve this settlement early next week. More than 6,500 hourly nonmanagerial employees who worked at corporate locations in California between January 24, 2009 and the present stand to benefit from this settlement.

Unfortunately, the restaurant and fast food industry is notorious for skirting wage and hour laws. Common violations include being forced to work or prep stations before and after you clock-in or out, completing large amounts of side work and getting paid the wrong hourly rate for it, having to share tips with kitchen or managerial staff, and not having proper time keeping methods that often results in unpaid minimum wages and unpaid overtime pay. If you are unsure if you are getting paid correctly, it is beneficial to speak to an employment attorney to understand your rights. At Fitapelli & Schaffer, LLP you can speak to one of our available attorneys for a free and confidential consultation. We can be reached at (212) 300-0375 or by visiting our website for additional information.