McDonald’s Corp. agreed to pay $26 million to settle a long-running labor dispute over allegations that the fast-food giant underpaid some of its U.S. staff.
Several McDonald’s workers sued the company in 2013 for a variety of labor violations, including using a timekeeping system that prevented workers from being paid overtime. The class-action suit included tens of thousands of McDonald’s cooks and cashiers in corporate-run stores across California.
The allegations included workers being forced to clock out during times when restaurants were quiet and barred from taking breaks. Workers also claimed that they bore the cost of buying and cleaning uniforms.
As part of the settlement, McDonald’s denied any wrongdoing.
“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,” a McDonald’s spokeswoman said in a statement.
She added that McDonald’s regularly adds trainings and resources to its corporate-owned restaurants to promote compliance with labor laws.
As part of the settlement, McDonald’s agreed to permit workers to leave the restaurant during their meal periods, maintain detailed electronic time records, provide additional uniforms to crew members and no longer make workers take rest breaks as soon as a shift starts.
McDonald’s has faced a string of challenges at its U.S. restaurants this year. Labor organizers and some lawmakers have called on the company to address workplace harassment allegations and raise its minimum wage to $15 an hour.
Earlier this month, the American Civil Liberties Union and a group of workers from Michigan accused the fast-food giant in a lawsuit of not properly handling allegations of sexual harassment at one of its restaurants.
A group of Chicago-area workers sued the fast-food chain last week, claiming that design changes at the stores made them more vulnerable to assault.
McDonald’s says it takes its responsibility to provide a safe working environment for its employees seriously and, along with its franchisees, continues to make investments in training programs that bolster the safety of its customers and employees.
The company has said it has demonstrated its commitment to safe and respectful workplaces by implementing antiharassment training at all of its corporate-owned restaurants.