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

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.

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