McDonald’s Franchisees to Pay $1M in a Class Action Settlement

class action settlement

A class action settlement of $1 million is reached between the owners of 16 McDonald’s restaurants located in Pennsylvania and the plaintiffs. It’s worth noting that the class action settlement is between owners of these restaurants Albert and Carol Mueller and plaintiffs in an employment class action.

According to the class action settlement terms, each of the eight plaintiffs will get $1,250. Additionally, they will also receive the reimbursement of the fees related to debit cards. Other class members will get the following: $100 and fees they paid, as the employment class action settlement says.

McDonald’s class action lawsuit

It was in 2013 when Natalie Gunshannon a 27-year old single mother filed the lawsuit against the restaurant chain McDonald’s. She used to work at one of the McDonald’s restaurants located in Shavertown. The plaintiff received $7.44 between April 24 and May 15. She received her pay with debit cards that had high fees. Thus, the plaintiff alleges this reduced her pay significantly and as a consequence, the amount of money that she received was less than the minimum wage.

The plaintiff tried to find out whether it’s possible to receive the money by check. However, they informed her that debit cards are the only option which she has. The plaintiff also became aware that the sum of money which she will earn in the future will be deposited into the debit card account. That’s to say, she has the opportunity of using her financial means from there. The complaint stated that employees who worked for an hourly rate had no chance to get their money via bank check or cash. The suit claims that according to the Pennsylvania labor law, employees should have the opportunity of choosing how they want to receive their pay whether by check or cash.

Pennsylvania labor law

Pennsylvania labor law lawsuits refer to the violations of Pennsylvania labor laws, for example, overtime pay violations and discrimination. Here are the laws which aim to protect employees in Pennsylvania: the Fair Labor Standards Act, also known as FLSA, as well as the Occupational Safety and Health Act or OSHA.

About the company

McDonald’s is one of the most popular American fast food restaurant chains. The foundation of the restaurant chain dates back to 1940. At first, it was a barbecue restaurant, run by Richard and Maurice McDonald based in California. It was in 1948 when they made a decision of turning their barbecue restaurant into a hamburger stand. Arizona is the state where the first franchise opened using arches logo. It occurred in 1953.

McDonald’s can boast with 36900 outlets in 100 countries. The giant restaurant chain is serving 69 million customers on a daily basis. Among the main products of McDonald’s are hamburgers, cheeseburgers, wraps, desserts, etc. The reports provided by BBC (2012) show that it is the second largest private employer in the world.


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