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$3.75M Settlement In McDonald’s California Wage Suit

This is a settlement for the California Restaurant & Food Service Labor Law lawsuit.

Santa Clara, CA: A California wage and hour class action lawsuit against McDonald’s has been settled for $3.75 million. The complaint was brought by a group of current and former workers for five locations in California who alleged the franchisee, The Edward J. Smith and Valerie S. Smith Family Limited Partnership, which owns the five San Francisco Bay Area restaurants where the plaintiffs worked, and McDonald’s as the parent company, miscalculated wages, missed overtime payments, and unpaid uniform maintenance. According to court records, the plaintiffs alleged McDonald’s was a joint employer with the franchisee.

Under the terms of the agreements, McDonald’s Corp. will pay $3.75 million to settle the proposed wage-and-hour class action. This comes three months after a California federal judge ruled the franchise owner's settlement didn’t eliminate the parent company, McDonald’s, responsibilities.

The employees of some California restaurants will receive $1.75 million, which would see over 800 restaurant workers covered for the economic losses. About $2 million will go to cover attorneys’ fees and costs, less than half of the fees and costs incurred in the litigation, according to a motion for preliminary approval.

The four named plaintiffs, current and former McDonald’s employees Stephanie Ochoa, Ernestina Sandoval, Yadira Rodriguez and Jasmine Hedgepeth, reached a $700,000 settlement with the franchise owner in December.

The case is Stephanie Ochoa et al. v. McDonald's Corp. et al., case number 3:14-cv-02098, in the U.S. District Court for the Northern District of California.

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Published on Oct-31-16


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