McDonald’s Corp agreed to pay $26 million to settle a nearly seven-year-old lawsuit accusing the fast food chain of underpaying U.S. staff at its corporate-owned restaurants in California.
The preliminary settlement resolves claims that the company used a timekeeping system that cheated workers out of overtime, barred workers from taking rest breaks during their shifts, and forced workers to clean and iron their uniforms out of pocket.
It resolves claims by about 38,000 cashiers and cooks in California, and is the largest wage settlement against Chicago-based McDonald’s in the United States, representatives for the plaintiffs said.
The accord requires McDonald’s to pay required overtime, track pay electronically, provide rest breaks during rather than at the start or end of shifts, and provide replacement work uniforms when old uniforms become damaged or worn out.
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