McDonald’s to pay $38m to settle California wages suit

McDonald’s has agreed to pay $US26m ($38.4m) to settle a long-running labour dispute over allegations of worker underpayment.

Several McDonald’s workers sued the company in 2013 for a variety of labour violations Picture: AP

McDonald’s has agreed to pay $US26m ($38.4m) to settle a long-running labour dispute over allegations that the fast-food giant underpaid staff in certain California restaurants.

Several McDonald’s workers sued the company in 2013 for a variety of labour violations, including using a timekeeping system that prevented workers from qualifying for overtime pay.

The class-action suit included tens of thousands of McDonald’s cooks and cashiers.

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.

McDonald’s denied wrong­doing as part of the settlement, which applies only to California.

“While we continue to believe our employment practices comply with the California Labour Code, we have decided to resolve this lawsuit filed back in early 2013,” McDonald’s said.