Settlement Reached in McDonald’s California Wage and Hour Class Action Lawsuit

Recently, McDonalds agreed to pay nearly $4 million to put an end to a McDonald’s California wage and hour class action lawsuit.

Three months ago, a federal judge ruled that a franchise owner’s settlement in the case would not affect the responsibility of McDonald’s Corp in this McDonald’s California wage and hour class action lawsuit.

The settlement stipulated that McDonald’s Corp would pay $1.75 million to a group of more than 800 California restaurant workers.

The other $2 million would go to cover the costs of litigation as well as attorneys’ fees.

However, according to the motion for preliminary approval, the $2 million will only cover less than half of the fees and costs incurred in litigation.

The settlement paid to the more than 800 workers in this McDonald’s California wage and hour class action lawsuit would cover all of their economic losses and leave some funds for civil penalties.

A recent motion said, “All class members will promptly receive significant economic and non-economic benefits without facing the risks and delays of one or more trials and appeal. For all of these reasons, plaintiffs and their counsel believe that this settlement is fair, adequate and well within the range of reasonableness.”

Workers claimed that, even after they’d reached a deal with The Edward J. Smith and Valerie S. Smith Family Limited Partnership, which owns the five San Francisco Bay Area restaurants where the plaintiffs worked, they still felt cheated out of pay that was owed them.

The Ninth Circuit decided that the workers could proceed as a class, and McDonald’s appealed that decision.

The workers stated that the franchisee and McDonalds were joint employers.

The judge’s order certified the class of current and former workers for the five bay area locations, claiming miscalculated wages, unpaid overtime and unpaid uniform maintenance.

However, for meal and rest break violations, they were denied class certification.

McDonald’s California Wage and Hour Class Action Lawsuit Settlement Terms

There are four named plaintiffs in this McDonald’s California wage and hour class action lawsuit: Stephanie Ochoa, Ernestina Sandoval, Yadira Rodriguez and Jasmine Hedgepeth.

Last December, they reached a settlement of $700,000 with the franchise owner.

One of the attorneys for the plaintiffs said that in addition to the settlement that was reached, McDonald’s will now create a training program for franchisees to prevent wage and hour violations in the future.

She was quoted as saying, “We are confident that this settlement will make a significant difference in the daily lives of these workers.”

McDonald’s issued a statement saying that it was ruled previously by a California court that McDonald’s was not a joint employer.

The spokesperson for McDonald’s said, “With this agreement, McDonald’s reconfirms that it is not the employer of or responsible for employees of its independent franchisees, rather we entered into this mutually acceptable resolution to avoid the costs and disruption associated with continued litigation.”

In essence, McDonald’s notes that it is not obligated to provide for the employees of all of its franchised stores, but to avoid future legal issues, it would agree to the settlement.

The McDonald’s California Wage and Hour Class Action Lawsuit is Stephanie Ochoa et al. v. McDonald’s Corp. et al., Case No. 3:14-cv-02098, in the U.S. District Court for the Northern District of California.

Join a Free California Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay within the past 3 years in California, you have rights – and you don’t have to take on the company alone.

Get a Free Case Evaluation Now