McDonald’s settles $26 million labor dispute

McDonald’s Corp.

MCD, -0.35%

  agreed to pay $26 million to settle a long-running labor dispute over allegations that the fast-food giant underpaid some of its U.S. staff.

Several McDonald’s workers sued the company in 2013 for a variety of labor violations, including using a timekeeping system that prevented workers from being paid overtime. The class-action suit included tens of thousands of McDonald’s cooks and cashiers in corporate-run stores across California.

The allegations included workers being forced to clock out during times when restaurants were quiet and barred from taking breaks. Workers also claimed that they bore the cost of buying and cleaning uniforms.

As part of the settlement, McDonald’s denied any wrongdoing.

An expanded version of this story appears on

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