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Article

27 Nov 2019

Author:
Kate Gibson, CBS News

USA: McDonald's pays $26 million to resolve lawsuit alleging wage theft

"McDonald's pays $26 million over claims it stole California workers' pay", 25 November 2019

McDonald's will pay $26 million to resolve claims...[it] skimmed wages from some 38,000 workers at corporate-run stores across California. 

The preliminary accord settles a years-long legal battle that began in 2013 when Los Angeles McDonald's worker Maria Sanchez filed suit against the company, with three other employees then signing on. The suit accused McDonald's of wage theft as far back as 2009, according to the agreement...

...The suit alleged McDonald's violated California overtime law, which requires workers be paid overtime when working more than eight hours in a 24-hour period. The fast-food company, however, structured its timekeeping to skirt the law by attributing all hours to the day a shift started, as opposed to when the work was actually performed. Employees were not given meal or rest breaks when restaurants were busy...the suit maintained.

The suit was filed on behalf of some 38,000 people employed at stores owned and operated by McDonald's...

...McDonald's said it decided to resolve the lawsuit even though it did not believe it had violated the state's labor law. "The parties have reached a mutually acceptable resolution and have submitted the settlement to the court for its review and approval..."...