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McDonald's may be liable for worker lawsuits
By Patrick M. Sheridan
July 29, 2014
NEW YORK (CNNMoney)
Facing a barrage of lawsuits from fast food worker groups seeking fair treatment and compensation, McDonald's could be on the verge of losing one of its main protections.
The National Labor Relations Board's top lawyer on Tuesday determined that McDonald's (MCD) is a "joint employer,"along with thousands of independent franchise owners.
The ruling, if upheld, would mean that McDonald's could be held liable for labor violations at its more than 12,000 franchisee-owned restaurants.
"McDonald's can try to hide behind its franchisees, but today's determination by the NLRB shows there's no two ways about it: The Golden Arches is an employer, plain and simple," said Micah Wissinger in a statement issued by a public relations firm representing fast food workers. Wissinger is an attorney who brought the case on behalf of McDonald's workers in New York City.
In March, McDonald's workers filed seven class-action lawsuits in New York, California and Michigan over wage theft violations. The suits allege that McDonald's has forced employees to work off the clock, not paid them overtime and struck hours off their time cards.
McDonald's has contended that franchisees operate as independent businesses and that therefore, it's not liable, but the N.L.R.B. ruling contradicts that claim. Other fast-food operators like Burger King could feel the repercussions.
The decision was hailed by low wage workers who have recently staged protests across the country seeking a $15 an hour wage.
"McDonald's clearly uses its vast powers to control franchisees in just about every way possible," Kendall Fells, organizing director of Fast Food Forward, said in a statement. "It's time the company put those same powers to work to do something about the fact that its workers are living in poverty."
<snip>
.
McDonald's may be liable for worker lawsuits
By Patrick M. Sheridan
July 29, 2014
NEW YORK (CNNMoney)
Facing a barrage of lawsuits from fast food worker groups seeking fair treatment and compensation, McDonald's could be on the verge of losing one of its main protections.
The National Labor Relations Board's top lawyer on Tuesday determined that McDonald's (MCD) is a "joint employer,"along with thousands of independent franchise owners.
The ruling, if upheld, would mean that McDonald's could be held liable for labor violations at its more than 12,000 franchisee-owned restaurants.
"McDonald's can try to hide behind its franchisees, but today's determination by the NLRB shows there's no two ways about it: The Golden Arches is an employer, plain and simple," said Micah Wissinger in a statement issued by a public relations firm representing fast food workers. Wissinger is an attorney who brought the case on behalf of McDonald's workers in New York City.
In March, McDonald's workers filed seven class-action lawsuits in New York, California and Michigan over wage theft violations. The suits allege that McDonald's has forced employees to work off the clock, not paid them overtime and struck hours off their time cards.
McDonald's has contended that franchisees operate as independent businesses and that therefore, it's not liable, but the N.L.R.B. ruling contradicts that claim. Other fast-food operators like Burger King could feel the repercussions.
The decision was hailed by low wage workers who have recently staged protests across the country seeking a $15 an hour wage.
"McDonald's clearly uses its vast powers to control franchisees in just about every way possible," Kendall Fells, organizing director of Fast Food Forward, said in a statement. "It's time the company put those same powers to work to do something about the fact that its workers are living in poverty."
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