McDonald’s hit with $100m class action over allegations staff forced to work for free

Thousands of current and former McDonald’s managers allege they were underpaid for work they were made to do before and after their shift. See the fast food giant’s reaction.

Exclusive: Fast food giant McDonald’s has been hit with a $100 million class action from current and former employees alleging they were forced to work before and after their rostered shifts for free.

The SDA launched the legal action late on Wednesday in the Federal Court on behalf of about 25,000 managers and supervisors working across 1000 stores nationally they claim were underpaid more than $200 a week.

It is alleged the workers were forced to complete safety and stock checks, prepare machinery, and review sales and calendars before their shifts start, as well as count and record waste and balance tills after their shift.

McDonald’s has been hit with a $100 million class action from current and former employees alleging they were forced to work before and after their rostered shifts for free. Picture: NCA NewsWire/Sarah Matray

These checks took 30 minutes and managers were not allowed to clock on until their official rostered start time – with another 30 minutes check after they stopped being paid at the end of the day.

The union is alleging the practice was deliberate to bring the wage bill down.

SDA national secretary Gerard Dwyer accused the fast food giant of working on a broken business model.

“This is wage theft and exploitation on a colossal scale,” Mr Dwyer said.

The SDA wants McDonald’s to back-pay their managers for requiring them to work for free and is asking the Federal Court to award penalties against McDonald’s Australia and its operators.

SDA national secretary Gerard Dwyer. Picture: AAP Image/Joel Carrett

Mr Dwyer said McDonald’s employs between 8000 and 10,000 managers nationwide at any time, and a company that size shouldn’t expect staff to work up to an hour a day unpaid.

“We estimate that a manager working five shifts a week could have been required to

complete up to six weeks’ worth of work completely for free,” Mr Dwyer said.

“No matter how you slice the burger, what McDonald’s have done is unlawful and illegal”.

Former shift supervisor Mikayla Martin-Coats, 25, is among those who have joined the class action.

“Getting to work 30 minutes early was not a choice, it was an expectation,” Ms Martin-Coats said.

“If I didn’t get to work 30 minutes early, I would be called in for a meeting and receive a warning from my manager – it wasn’t worth risking getting there on time.”

Former McDonalds shift supervisor Mikayla Martin-Coats, 25, is among those who have joined the class action. Picture: Supplied

She knew what was happening was wrong but said she felt “powerless” to stop it.

“There was a long list of tasks that I was required to do before every shift to ensure everything was ready to go and the store was up to standard … pre- and post-shift work was always unpaid and never on my roster,” she said.

The SDA investigation found some staff were disciplined for not starting half an hour earlier than the paid rostered shift.

Some workers during performance reviews received a negative grade for not coming in “early enough”.

If they did not come in at the requested time to complete unpaid work, some were counselled by their manager and were denied a promotion.

Two separate class actions by the SDA and Shine Lawyers against McDonald’s is already before the Federal Court which seeks compensation for unpaid rest breaks on behalf of hundreds of thousands of McDonald’s workers.

McDonald’s Australia said it took its employment law obligations seriously.

“We value our people and the contributions they make to our restaurants every day. We are committed to ensuring they receive all correct workplace entitlements and pay under the Fast Food Industry Award and the former enterprise agreement,” a spokeswoman said.

McDonald’s said it would respond to the claim in due course.

If people want to join the class action they should go to https://national.sda.com.au/maccasclassaction.