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McDonald’s employees, particularly managers, who invested in the hamburger chain’s 401k program may be eligible to participate in a class action lawsuit.
Class action lawyers are investigating whether McDonald’s may have breached its fiduciary responsibility by investing McDonald’s managers’ 401k plans in risky, unsuitable investments, resulting in the portfolio earning less than it could.
In 2014, there were 14,350 McDonald’s restaurants in the United States, with revenue of $8.65 billion. That same year there were 21,908 international locations, providing a worldwide revenue of $27.44 billion according to statistical reports. With such large revenue, it would be easy to assume that McDonald’s as a company knows how to handle investments. However, such has not been the case according to the proposed McDonald’s 401k plan class action investigation.
Allegations
The Employee Retirement Income Security Act of 1974 (ERISA) states that plan sponsors like employers must operate their retirement plans in the best interests of their employees. This means the employer is the fiduciary on behalf of the employee.
McDonald’s touts an enticing benefits plan to prospective employees. Its profit sharing and savings plan allows employees to save between 1 percent and 50 percent of their pay on a tax-deferred basis in the 401k feature of the plan.
McDonald’s matches eligible employees’ contributions with $3 for each $1 of the first 1 percent of pay they contribute, and $1 for each $1 on the next 4 percent they contribute. Eligible employees may also receive a discretionary profit sharing match of 0 percent to 4 percent based on the first 1 percent of pay they contribute. Employees are always 100 percent vested in their contributions and the company matches, according to McDonald’s.
The global fast food chain also offers MCDirect Shares, a direct stock purchase plan that lets employees further build ownership and reinvest dividends in the company, as well as a credit union and financial planning services.
At issue is whether McDonald’s fiduciaries, the people in charge of administering and managing the 401k plans, breached their fiduciary responsibility for the company’s 401k plan by including unsuitable investments in its portfolio, resulting in the portfolio earning less than it should have under better circumstances.
McDonald’s 401k Plan Litigation
Current or former McDonald’s employees who held various corporate managerial positions, including Director of Operations, District Manager Supervisor, District Trainer, Crew Trainers, Shift Managers, or Store Managers, and have invested in the McDonald’s 401k plan since 2007 are encouraged to speak to a class action lawyer to see if they qualify to be part of the McDonald’s 401 Class.
McDonald’s store managers directly manage an average staff of about 75 employees per store and are responsible for controlling profitability, optimizing restaurant management and overseeing sales, human resources, and team management in their respective stores.
Shift managers typically supervise between 15 and 20 employees per shift and oversee all restaurant operations, such as greeting customers, quality control, and speed of service. Shift managers are also responsible for ensuring equipment maintenance and monitoring restaurant inventory.
Crew trainer is the entry managerial position at McDonald’s chains. Crew trainers are responsible for training workers in customer service and food preparation as well as making sure both the restaurant and kitchen are clean.
If you held any of these types of McDonald’s employee managerial positions and believe your 401k plan was comprised because of the company’s failure as a fiduciary, you should consider filing legal action.
Join a Free McDonalds 401k Class Action Lawsuit Investigation
A class action lawsuit investigation is currently underway to pursue the possibility of taking legal action against McDonalds for potentially violating ERISA. If you are a McDonalds employee who signed up for a McDonalds 401k account since 2007, you may have a legal claim.
