McDonald's Pays $3.75 Million Over Labor Complaints

02-Nov-2016 - USA

Burger giant McDonald's Corp. (MDC) has agreed to pay $3.75 million to settle a labor lawsuit with about 800 franchise workers, who alleged that the company violated labor laws.

The law suit claims that the company owed overtime pay due to flaws in payroll systems and denied state mandated breaks.

McDonald's will pay about 800 employees at five California restaurants $1.75 million in back pay and damages, as well a $2 million in legal fees to settle the allegations.

This is the first time that McDonald's has agreed for a settlement, lawyers said. The settlement now requires approval from district judge. (dpa)

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