McDonald’s Is Paying Out $26MM to Thousands of Workers After Settling a Wage-Theft Lawsuit

McDonald's is paying out $26 million to workers after settling a wage-theft lawsuit.

Source: Business Insider | Published on October 9, 2020

McDonalds lawsuit

On Wednesday, a California Supreme Court judge approved a $26 million settlement, ending a year long battle over wage theft allegations.

Roughly 34,000 McDonald's employees at corporate-owned locations across California will receive checks as part of the settlement. Workers will receive checks for an average of $333.52, with some receiving as much as $3,927.91, according to a representative for the plaintiffs.

The original lawsuit was filed in 2013, on behalf of McDonald's employees in corporate locations in California. Workers alleged that McDonald's committed wage theft in various ways, including failing to pay all wages when due, failing to provide meal and rest breaks for workers, and failing to pay overtime wages or minimum wage.

McDonald's agreed to the $26 million settlement which required the approval of a Los Angeles County Superior Court judge last November. The settlement required the company to rework some policies related to overtime, rest breaks, and uniform practices, as well as provide training to inform employees of the correct practices.

McDonald's did not immediately respond to Business Insider's request for comment.

"While we continue to believe our employment practices comply with the California Labor Code, we have decided to resolve this lawsuit filed back in early 2013," the company said in a statement last November. "With this settlement, the parties have reached a mutually acceptable resolution and have submitted the settlement to the Court for its review and approval."