News

NY franchisees reach settlement in McDonald's wage theft suit

March 18, 2014

Less than a week after a handful of lawsuits were brought against McDonald's for wage theft accusations, New York state has reached a settlement with seven of the chain's franchisees. New York was one of three states targeted in the class action suits, along with California and Michigan.

According to the Huffington Post, the seven franchisees will pay about $500,000 to employees who claimed they were underpaid.

NY State Attorney General Eric T. Schneiderman said employees "regularly performed off-the-clock work" before and after their shifts at Manhattan franchisee Richard Cisneros' restaurants.

Additionally, employees were not given a stipend for uniform maintenance, which is a New York state regulation, and they did not receive overtime pay after working 10 straight hours, the story said.

Money from the settlement will be awarded to more than 1,600 current and former McDonald's employees.

A spokesperson for Cisneros released the following statement to the publication: "I value my employees — and it is important to me that they be paid correctly ... I am pleased to have reached a settlement with the New York State Attorney General to correct mistakes my organization made in this area."