McDonald's Beats Suit Over Franchises' Alleged Pay Breaches

Law360, San Francisco (March 13, 2017, 4:45 PM EDT) -- A California federal judge on Friday granted McDonald's bid to end a proposed class action accusing the fast-food giant's Bay Area franchises of violating wage laws, finding the larger corporation doesn't control wages at its franchises and isn't liable for labor statute violations.

U.S. District Judge Richard Seeborg granted McDonald's bid for summary judgment, finding the workers failed to support their arguments that the labor code's definition of an employer extends to franchisors — in this case McDonald's — who "ostensibly" control workers' wages through an agent. The state's wage laws only apply to employers who actually, and not ostensibly, control...

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