Retail

Major Legal Setback for McDonald’s

May 30, 2014
By Stephanie West

Los Angeles, California – In a ruling that clears the way for legal proceedings that will result in a wide ranging review of McDonald's corporate involvement in workforce management and alleged wage theft practices, Los Angeles Superior Court Judge Jane L. Johnson this week rejected McDonald's Restaurants of California Inc.'s bid to dismiss the bulk of a  class-action lawsuit alleging widespread wage theft at more than 100 corporate-run restaurants in the state. 

Judge Johnson said that the claims brought by four former McDonald's hourly workers were sufficiently alleged, denying motions by McDonald's attorneys that would have limited the case to a specific set of plaintiffs in just four corporate-owned restaurants. 

The suit alleges that McDonald's has a policy and practice of curtailing labor costs by requiring its 103 corporate restaurants in California to limit labor costs to a specific percentage of gross sales, causing managers to violate state labor laws to keep costs in line. Plaintiffs allege that managers have adjusted time records to erase some employee hours worked, failed to provide overtime, disallowed meal breaks during busy periods and required unpaid work before and after shifts.

May 30, 2014

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