Analysis

McDonald's Wage Deal May Be Warning To Other Franchisors

Law360, New York (November 2, 2016, 7:19 PM EDT) -- While McDonald's Corp.'s decision to pay a franchisee's workers $3.75 million to settle a wage-and-hour class action won't affect the fast-food giant's joint employer case before the National Labor Relations Board, experts say the deal could cause other companies to think twice about exerting control over a franchisee's operations.

Late last week, a group of workers told a California federal court that they had reached the deal with the fast-food giant to end a wage-and-hour suit. The company would pay $1.75 million to the employees of some California restaurants and about $2 million to cover attorneys' fees and costs — less...

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