For the first time in McDonald’s history, the company has agreed to pay a major $3.75 million (approx. €3.39 million) fine in order to settle a class action by 800 employees in one of its Californian franchisees. The staff claims to have suffered labor law violations. The judge hearing the case accepted the admissibility of the complaint against the fast-food chain and this prompted the company to seek a settlement without being recognized as joint employer. McDonald’s is the target of several legal actions which aim to develop the concept of joint employer.
For several years their working time and overtime hours have been inaccurately recorded, and their lunch breaks ignored. Smith Family LP, the franchisee has agreed to pay $700,000 (approx. €635,000). However this is the first time McDonald’s is also paying up. Management continues to refuse to recognize McDonald’s as a joint employer of the 800 complainants and affirms it works with independent franchise firms that are solely responsible for wages policies. McDonald’s spokesperson Terri...
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