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.