NLRB: McDonald's settlement is '100 percent of backpay'  - CUE, Inc.
  • NLRB: McDonald’s settlement is ‘100 percent of backpay’ 

NLRB: McDonald’s settlement is ‘100 percent of backpay’  

POLITICO has an update on the settlement between McDonald’s and the NLRB that I posted about yesterday.  It’s unlikely this settlement will have any impact on other joint employer cases.

A settlement submitted by McDonald’s in administrative law proceedings would “provide 100 percent of back pay” to workers involved in the case, the NLRB said in a written statement today.

The NLRB confirmed reports yesterday of a settlement submitted to Administrative Law Judge Lauren Esposito, saying it represents “a full remedy for all unfair labor practice cases pending.” The fast-food giant has also agreed to a fund to pay out in the event of further breaches of any settlement agreement.

McDonald’s and the NLRB’s Trump-appointed General Counsel, Peter Robb, are eager to reach a settlement in order to avoid creating a precedent holding a major franchiser liable for the labor practices of its franchisees. Robb’s predecessor, Obama-appointed Richard Griffin, argued in filing the case that McDonald’s was a “joint employer” with its franchisees because, among other reasons, it kept close track of franchisee employees through a computer system.

“These settlements represent a full remedy for the employees who have waited since the first charges were filed in November of 2012 and, if approved, would avoid years of possible additional litigation,” the NLRB said.

But the lawyer for workers in the case rejected the NLRB’s favorable characterization and said he would present his objections to the judge.

“This proposal by McDonald’s is not a settlement,” said Micah Wissinger, an attorney representing the workers. “In a real settlement, McDonald’s would take responsibility for illegally firing and harassing workers fighting to get off food stamps and out of poverty.”