McDonald’s offered to pay $2.4 million to settle a suit by more than 2,200 current former employees claiming that they had not been paid for overtime as required by the Fair Labor Standards Act. The settlement provides for awards to each plaintiff ranging from $675 to $1100.
Assistant managers and employees in similar positions filed the lawsuit in the U.S. District Court of the District of Delaware (Justison v. McDonald’s Corp., settlement approved, No. 08-448 (D. Del. Nov. 9, 2010)).
In the lawsuit, they claim that McDonald’s willfully misclassified them as exempt and did not compensate for overtime during mandatory three-month training periods over the course of three years.
The lawsuit contends that McDonald’s knew that assistant managers regularly worked overtime during their training period and they were nonexempt as trainees. During these periods of training, employees had no supervisory duties and exercised no discretion with regard to their duties and worked an average of 10-20 hours per week over the 40-hour overtime threshold. The plaintiffs assert that McDonald’s willfully failed to pay wages due.
Plaintiffs have stated that the primary duties performed in the initial three month time period consisted of nonexempt duties under the FLSA, including preparing food, taking and filling orders, taking inventory, staffing cash registers, and removing trash from trash cans.
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