Top Class Actions  |  December 12, 2022

Category: Closed Class Actions

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McDonald's logo on a striped facade, representing the McDonald’s COBRA class action settlement.
(Photo Credit: ricochet64/Shutterstock)

McDonald’s agreed to pay over $156,000 as part of a settlement to resolve a class action lawsuit claiming it failed to send COBRA-compliant notices to terminated employees.

The class action settlement benefits participants and beneficiaries of the McDonald’s Corp. Health Plan who received a COBRA notice between Dec. 15, 2017, and Feb. 9, 2021, and who did not elect COBRA benefits.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers the right to continue their healthcare insurance benefits after they lose these benefits due to job loss, hour reductions and certain life events. Under COBRA, employers are required to send a notice to eligible former employees informing them how to elect COBRA benefits.

McDonald’s allegedly failed to comply with COBRA notice requirements by sending multiple notices in separate documents, each containing different vital COBRA information. Plaintiffs in a COBRA class action lawsuit claim that these notices were designed to confuse workers

“Despite having access to the Department of Labor’s Model COBRA form, Defendant chose not to use the model form — presumably to save money by pushing terminated employees away from electing COBRA,” the COBRA class action lawsuit contends.

As a result of the confusing and misleading notices, workers such as the plaintiff allegedly lost their health and dental insurance for their families — causing financial hardship in the form of medical bills and other expenses.

McDonald’s hasn’t admitted any wrongdoing but agreed to pay $156,782.50 to resolve these class action allegations.

Under the terms of the settlement, class members can receive an equal share of the settlement fund. 

Exact payments will vary depending on any deductions taken from the settlement fund and the number of class members who participate. According to the settlement website, payments could be as high as $17.50 but may be between $7 and $10 based on proposed deductions for attorneys’ fees, court costs and other expenses. 

If any checks are uncashed or other funds remain in the settlement, the excess money will be donated to Bay Area Legal Services, a non-profit legal aid organization, as a cy pres recipient approved by the court.  

The deadline for exclusion and objection is Jan. 15, 2023. 

The final approval hearing for the settlement is scheduled for Feb. 8, 2023.

No claim form is required to benefit from the McDonald’s COBRA notice class action settlement. Class members who do not exclude themselves will automatically receive settlement benefits but can update their address on the settlement website to ensure they receive their payment. 

Who’s Eligible

Participants and beneficiaries of the McDonald’s Corp. Health Plan who received a COBRA notice between Dec. 15, 2017, and Feb. 9, 2021, and who did not elect COBRA benefits.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Exclusion Deadline

01/15/2023

Case Name

Johnson, et al. v. McDonald’s Corporation, Case No. 1:21-cv-24339, in the U.S. Courthouse for the Southern District of Florida, Miami Division

Final Hearing

02/08/2023

Settlement Website
Claims Administrator

Johnson v. McDonald’s Corporation
c/o Settlement Administrator
PO Box 23680
Jacksonville, FL 32241-3680
888-755-4391

Class Counsel

Luis A Cabassa
Brandon J Hill
WENZEL FENTON CABASSA PA

Defense Counsel

Kimberly Jones
Richard Pearl
FAEGRE DRINKER BIDDLE & REATH LLP

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24 thoughts onMcDonald’s COBRA notices $156K class action settlement

  1. NATHANIEL L EDMONDS says:

    add me

  2. WILLIE F JONES says:

    I worked for McDonald several years. Please add me

  3. Keontee Mosley says:

    Add me please

  4. Marissa Ann Vazquez says:

    Add me please. I am a wrongfully let go multiple times Employee. With Violated ADA. Plus more. Employee

  5. Valerie McElroy says:

    Add me I was employee for 13 years as assistant manager

  6. Joanne Freeman says:

    I worked at McDonald’s

  7. Keieh McGee says:

    I have work McDonald’s

  8. Linda Hopkins says:

    Add Me

  9. Marleesa J Tennis says:

    I worked at McDonald’s… Please add me

  10. Dalonda white says:

    December 10 2022 I went there for lunch and there had meal the double quarter pounder took a bite and there was couple strainds of blonde hair went to show them they act like they couldn’t see it and had my sandwich open on the counter with the blond hair they looked at me and turned away and they ignored me and the hair was plain as day on the counter next to the double quarter pounder add me please they need classes on mannerism and where hair nets and glasses to see

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