McDonald's is paying out $26 million to thousands of workers after settling a wage-theft lawsuit, with employees getting checks for as much as $3,900 in lost wages

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McDonald's is paying out $26 million to thousands of workers after settling a wage-theft lawsuit, with employees getting checks for as much as $3,900 in lost wages
McDonald's is paying out $26 million to workers after settling a wage-theft lawsuit.Yaoinlove/Shutterstock
  • McDonald's will pay fast-food workers in California $26 million, as part of a settlement for a wage-theft lawsuit approved by a judge on Wednesday.
  • The original lawsuit, filed in 2013, claimed that McDonald's failed to pay all wages when due, provide meal and rest breaks for workers, and pay overtime.
  • Workers will receive checks for an average of $333.52, with some receiving as much as $3,927.91, according to a representative for the plaintiffs.

McDonald's is paying out $26 million to workers after settling a wage-theft lawsuit.

On Wednesday, a California Supreme Court judge approved a $26 million settlement, ending a year long battle over wage theft allegations.

Roughly 34,000 McDonald's employees at corporate-owned locations across California will receive checks as part of the settlement. Workers will receive checks for an average of $333.52, with some receiving as much as $3,927.91, according to a representative for the plaintiffs.

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The original lawsuit was filed in 2013, on behalf of McDonald's employees in corporate locations in California. Workers alleged that McDonald's committed wage theft in various ways, including failing to pay all wages when due, failing to provide meal and rest breaks for workers, and failing to pay overtime wages or minimum wage.

McDonald's agreed to the $26 million settlement — which required the approval of a Los Angeles County Superior Court judge — last November. The settlement required the company to rework some policies related to overtime, rest breaks, and uniform practices, as well as provide training to inform employees of the correct practices.

McDonald's said in a statement to Business Insider that the company is "committed to always doing right by our employees."

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"While we continue to believe our employment practices comply with the California Labor Code, we also believe resolving this lawsuit – filed back in January 2013 – now, instead of engaging in further protracted litigation, is in the best interests of McDonald's, our company-owned restaurants and our employees," McDonald's statement continued. "This mutual agreement aligns with our ongoing commitment to providing employees with resources and training that continue to promote positive employee experiences."

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