October 31, 2016

McDonald’s Corp. agreed on Friday to pay $3.75 million to settle a lawsuit with about 800 Bay Area-based franchise workers, who claimed they were owed overtime pay due to flaws in payroll systems and denied state mandated breaks, among other complaints.

The settlement is the first time that McDonald’s corporate is paying franchise workers to settle a suit, lawyers said. It must now be approved by a district judge.

As McDonald’s and other fast-food workers organize for better pay and conditions, one crucial legal battlefront concerns whether McDonald’s corporate is responsible for labor violations at franchised stores, which the company does not own. Nearly 90% of McDonald’s US restaurants are owned and operated by franchisees.

The full article can be read here.