McDonald's Corp agreed to pay $26 million to settle a nearly seven-year-old...
- 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. 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.In a statement, McDonald’s said it still believes its employment practices complied with California labor law. It also said it is improving training at company-owned restaurants “to promote continued compliance with all wage and hour laws.
On Nov. 12, the American Civil Liberties Union and workers in Michigan sued McDonald’s for allegedly allowing sexual harassment to flourish at its restaurants.
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