McDonald’s Corp. has settled a California lawsuit filed by a group of workers who sued the Chicago-based chain for wage violations that included failure to pay overtime.
The $26 million payout impacts 38,000 people working in California restaurants and represented in the 2013 lawsuit, according to a report by CNN.
On Monday, McDonald’s said it stands by its business practices in California and continues to believe that company stores are complying with labor laws in the state. However, the company said it has decided to “resolve this lawsuit filed back in early 2013."
“At McDonald’s, we take our responsibility as an employer seriously and are deeply committed to the fair treatment of all of our employees. 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.
“With this settlement, the parties have reached a mutually acceptable resolution and have submitted the settlement to the court for its review and approval. McDonald’s remains committed to our employees, and we continuously roll out additional trainings and resources across corporate-owned restaurants to promote continued compliance with all wage and hour laws.”
The settlement comes several days after 17 McDonald’s workers filed a lawsuit against the company, accusing the chain of failing to provide a safe workplace for employees in Chicago-area restaurants. The suit describes unsafe conditions created by store redesigns. Lower counters, for example, have made it easier for angry customers to climb “on top of or over the counter to attack employees,” according to the suit.
A hearing date is set for March 20, 2020.
McDonald’s, in a statement, said it takes “seriously its responsibility to provide and foster a safe working environment for our employees, and along with our franchisees, continue to make investments in training programs that uphold safe environments for customers and crew members. In addition to training, McDonald’s maintains stringent policies against violence in our restaurants.”
McDonald’s operates about 14,000 restaurants in the U.S. More than half of domestic restaurants have been redesigned under the Experience of the Future format. The remodeled restaurants feature modern furniture, kiosks, curbside pick-up, upgraded drive-thrus, power outlets for charging devices and a pick-up counter for delivery orders.
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