McDonald's to Pay $26 Million in Wage Suit -- Update
November 25 2019 - 9:45AM
Dow Jones News
By Patrick Thomas
McDonald's Corp. agreed to pay $26 million to settle a
long-running labor dispute over allegations that the fast-food
giant underpaid some of its U.S. staff.
Several McDonald's workers sued the company in 2013 for a
variety of labor violations, including using a timekeeping system
that prevented workers from being paid overtime. 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.
As part of the settlement, McDonald's denied any wrongdoing.
"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," a McDonald's spokeswoman said in
a statement.
She added that McDonald's regularly adds trainings 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, maintain
detailed electronic time records, provide additional uniforms to
crew members and no longer make workers take rest breaks as soon as
a shift starts.
McDonald's has faced a string of challenges 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.
Earlier this month, the American Civil Liberties Union and a
group of workers from Michigan accused the fast-food giant in a
lawsuit of not properly handling allegations of sexual harassment
at one of its restaurants.
A group of Chicago-area workers sued the fast-food chain last
week, claiming that design changes at the stores made them more
vulnerable to assault.
McDonald's says it takes its responsibility to provide a safe
working environment for its employees seriously and, along with its
franchisees, continues to make investments in training programs
that bolster the safety of its customers and employees.
The company has said it has demonstrated its commitment to safe
and respectful workplaces by implementing antiharassment training
at all of its corporate-owned restaurants.
Write to Patrick Thomas at Patrick.Thomas@wsj.com
(END) Dow Jones Newswires
November 25, 2019 09:30 ET (14:30 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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