McDonald's agrees to $26M settlement in lawsuit over wages, work conditions

McDonald's agrees to $26M settlement in lawsuit over wages, work conditions
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McDonald’s will settle a class-action lawsuit brought by workers over wages and working conditions in California for $26 million, according to The Associated Press.

The agreement, which must still be approved by a Los Angeles County Superior Court judge, covers about 38,000 people and settles a nearly seven-year-old suit that accused McDonald’s Restaurants of California Inc. of a series of labor violations, including failure to pay overtime and minimum wages and provide legally required breaks.

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The lawsuit also alleged the company evaded paying workers overtime by attributing overnight shifts that began one day and ended the next entirely to the first day, according to the AP.

The agreement includes compensation for unpaid overnight overtime, missed breaks, back wages, and unreimbursed time and expenses for uniform maintenance, according to the AP, as well as periodic training for crew members and managers at corporate-owned locations.

“While we continue to believe our employment practices comply with the California Labor Code, we have decided to resolve this lawsuit filed back in early 2013,” the company said. “With this settlement, the parties have reached a mutually acceptable resolution and have submitted the settlement to the Court for its review and approval.”

The deal also requires that crew members be informed of rules governing meal and rest breaks and that McDonald's replace worn or damaged uniforms without cost, according to the AP.