A federal judge ruled last week that a group of workers at five McDonald’s locations can pursue legal action on a classwide basis in a claim involving California wage and hour laws.

The judge said that the claims contained adequate similarities to be granted class certification. The class action litigation can proceed even though a settlement agreement was reached with a franchise owner who was accused of violating California wage and hour laws.

U.S. District Judge James Donato said the McDonald’s Corp. could be taken to court by workers in a class action lawsuit because of the theory of “ostensible agency.” The fast-food giant’s employees would have the reasonable belief that they were employed by McDonald’s Corp.

Last fall, the judge had allowed the employees to proceed with claims against the company under the theory of ostensible agency. Last week, he added that such an action is not contrary to granting class certification.

“It may well be that the proposed class has the ‘fatal similarity’ of a failure of proof on ostensible agency,” Judge Donato said. “What is important for present purposes is that the mere fact that the ostensible agency inquiry will need to be made and resolved to determine McDonald’s liability in this case does not by itself stand as a bar to class certification.”

Four McDonald’s franchise workers filed the proposed class action lawsuit in March 2014 on the allegation that their managers had treated the workers unfairly.

McDonald’s managers were accused of adjusting time sheets by erasing hours worked; failing to pay overtime; barring meal breaks when the restaurant was busy; and requiring unpaid work be completed before and after scheduled shift times.

Judge Donato decided the workers had commonality in their claims of miscalculated wages and overtime violations, and of the fact workers were required to wash and iron their uniforms with no compensation. While these situations were determined well-suited to class certification, others were not.

The plaintiffs’ claims of meal break and rest break violations were inconsistent, and therefore, did not qualify for class certification.

California Wage and Hour Laws

California wage and hour laws are different than those in other states. The federal minimum wage is $7.25 per hour, but in California, the minimum wage is $10 per hour. Employers in California are required to pay the higher amount.

Also, California wage and hour laws dictated that even tipped employees are entitled to the full minimum wage per hour worked. (Some states allow employers to pay tipped employees a lower minimum wage.)

If an employee works more than eight hours in one day or more than 40 hours in one week, that employee is owed overtime pay of one and one-half times the regular rate of pay.

If an employee works a 12-hour shift, that employee in California must be paid double time. California wage and hour laws are overseen by the state’s Labor Commissioner.

The McDonald’s 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.

ATTORNEY ADVERTISING

The choice of a lawyer is an important decision and should not be based solely on advertisements.