$10M in fees sought in $26M McDonald’s labor settlement

McDonald's has agreed to pay $26 million to California workers to resolve unpaid wage claims, including about $10 million in legal fees.

The class of workers were represented by Joseph M. Sellers of Cohen Milstein Sellers & Toll PLLC, Matthew J. Matern of Matern Law Group PC, and Michael Rubin of Altschuler Berson LLP.

The attorneys said the agreement is the largest wage settlement against McDonald's in the United States.

The firms are also seeking about $10.1 million in attorney fees, including $1.5 million in litigation costs.

The settlement and fees are subject to approval by Los Angeles County Superior Court Judge Ann I. Jones. A hearing is set for Dec. 3. Sanchez v. McDonald's Restaurants of California, BC499888 (L.A. Super. Ct., filed Jan 24, 2013).

The settlement, tentatively reached Nov. 22, resolves claims in Los Angeles County Superior Court by about 38,000 cashiers and cooks who claimed corporate-owned restaurants of the Chicago-based company instituted a timekeeping system that cheated them out of overtime and rest breaks and forced them to pay for their uniforms out of pocket.

Per the settlement, McDonald's must create a mechanism to track required overtime and rest breaks.

McDonald's said its employment practices complied with the California Labor Code but decided to resolve the lawsuit.

"McDonald's remains committed to our employees, and we continuously roll out additional trainings and resources across corporate-owned restaurants to promote continued compliance with all wage and hour laws," said the company in a statement.

justin_kloczko@dailyjournal.com