Watch CBS News

McDonald's To Pay $3.75M Over Allegations Bay Area Franchise Owner Cheated Workers

KCBS_740 SAN FRANCISCO (AP) -- McDonald's has agreed to pay $3.75 million to settle a federal lawsuit that sought to hold the company liable for allegations that a Bay Area franchise owner cheated hundreds of workers out of wages and overtime.

The settlement announced on Friday still requires approval by a judge before it can go into effect.

The lawsuit in federal court in San Francisco is among several in recent years that have sought to get McDonald's recognized as a joint employer and hold the company, not just franchisees, responsible for working conditions at restaurants.

A judge in the San Francisco suit ruled last year that McDonald's was not liable as a joint employer. The company said in a statement that it reached a settlement to avoid the costs and disruption of continued litigation.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.