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Employment Law Notebook

Franchisor Pays Millions in Wage & Hour Settlement

Recently, McDonald's entered into a multi-million dollar settlement in a wage & hour class action in California.  This settlement is not unusual in terms of the dollar amount or that a well known company involved.  What is striking is that the franchisor McDonald's, took part in the settlement.  Usually the franchisor goes to great lengths to ensure that it is not responsible for wage & hour or other employment law-based liability.  Usually only the franchisor (owner of the local restaurant) has liability.  Of course, plaintiffs like to get a shot at the deep pockets (which is typically going to be the franchisor, rather than the franchisee).  Whether this case represents a trend or is an aberration remains to be seen.

You can see a report on the case at: