McDonald’s Agrees to Pay First Settlement to Franchise Workers Worth $3.75 Million

To settle a lawsuit alleging that it was accountable for labor law violations, McDonald’s Corp has agreed to pay $3.75 million to a California franchisee. This signifies what lawyers said was the first time the company has cleared legal claims by a group of U.S. employees at one of its franchises.

In a filing in U.S. district court in San Francisco, lawyers representing said

On Friday, lawyers said in a filing in US district court in San Franciso that Illinois-based McDonald’s would compensate the workers $1.75 million in back pay and damages and $2 million in legal fees. The lawyers represent around 800 workers at five restaurants held by a single franchisee.

The settlement occurs as the fastfood chain company copes with contentions before two U.S. agencies. The arguments are based on allegations that it is a “joint employer” of workers at franchise restaurants. This designation could make McDonald’s responsible for legal violations by franchisees. Further, it would compel  the company to deal with employees who unionize. In any way, a federal judge must approve the settlement.

The company is not a joint employer of franchise workers, McDonald’s spokeswoman Terri Hickey said on Monday.

She said that the company entered into this mutually suitable resolution to avoid the disruption and costs associated with a prolonged legal action.

The 2014 lawsuit asserted McDonald’s and Smith Family LP, the franchisee, disregarded California law by neglecting to pay overtime. Further, they failed to keep accurate pay records and did not reimburse workers for time spent cleaning uniforms. The franchisee earlier reconciled the claims for $700,000.

Last year, a judge declared that McDonald’s was not the complainants’ joint employer under state and federal laws. However, he said the company could still be deemed liable if the employees believed McDonald’s was their employer.

Lawyers for the workers, in Friday’s court filing, said the settlement was the first for McDonald’s in a class action case passed by franchise employees.

According to the court filing, the deal would also oblige McDonald’s to educate the franchisee, Smith Family, on the use of corporate software. These programs were designed to guarantee accordance with California’s distinctively stringent employment laws.

More legal woes

Meanwhile, McDonald’s is at the center of legal proceedings at the National Labor Relations Board. The trial could resolve whether the company is a joint employer under the federal law presiding union organizing.

Moreover, a union-backed group earlier this month said it had filed sexual harassment grievances against McDonald’s. The cases were filed with a federal agency on behalf of 15 workers. Most of the employees worked at franchise restaurants.

 

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Israel Wary of Obama’s Parting Present to Palestinians with Barely Three Months Left in Office

Washington threatened to re-evaluate U.S. policy to veto the U.N. Security Council resolution on Israel’s presence in the West Bank during the election for Israel’s Prime Minister last year. The threat stemmed from an interview of PM Benjamin Netenyahu who is seeking re-election. He said that there would be no Palestinian state as long as he is the Prime Minister. Natenyahu withdrew his statement after the elections when he was votes as Prime Minister. White House urged legislators nonetheless to make up options on how Obama could “preserve the two-state solution.”

The White House threat as of now has not yet materialized. Furthermore, the U.S. and Israel signed an agreement last month extending the U.S. subsidy of Israeli military. The agreed subsidy was for another 10 years. With the U.S. Focus on the Syrian conflict and the humanitarian emergency in Aleppo, as well as the current U.S. Presidential elections coming to a close, it seems that the Obama administration has its hands full.

Israel’s friends in Washington are privately worried with Obama’s intention to have an equal opportunity approach between Palestinians and Israelis before his term expires. Israel’s fear of a possible step by Obama may very well be plausible. 88 senators signed a letter to Obama asking him to re-evaluate the “long-standing U.S. policy” to veto anti-Israel resolutions at the U.N.

The White House has not released any statement with regard to the petition. The White House on the other hand has “strongly condemned” Israel for approving 98 new housing settlements in the West Bank. The U.S. has always opposed the construction of settlements in the West Bank from the beginning of the occupation. Israel had taken control of the land after the Six Day War in 1967. The U.S has not sanctioned Israel on the current settlement issue as of this time.

The Obama administration has several options it could take that can threaten Israeli occupation in the West Bank. Any policy that would be presented that could undermine Israel’s hold in the region would meet strong opposition. Obama has however faced similar opposition from Israel and its friends in Washington. The Iran nuclear deal had run through stiff opposition. The White house however, managed to put the bargain through Congress with just enough democratic support.

Time Running Out?

Obama would face a different scenario now as he only has three months before his term expires. The nuclear deal was pushed through as he had more than a year left in office. With Obama’s time in office running short, it remains to be seen how the democrats would react if he takes action against Israel’s settlement activity.

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