The board reported Thursday that it favors a settlement that will call for McDonald’s franchisees to pay back $171,636 to the impacted workers. The franchisees will have to also notify current and previous workers about the settlement and set up a $250,000 fund to deal with long run promises.
The workers ended up searching for a ruling that would consider McDonald’s a “joint employer” with its franchisees. That would have increased the firm’s liability and probably have designed it less difficult for McDonald’s 850,000 U.S. staff to variety a union.
But Chicago-based mostly McDonald’s insists it would not straight employ the personnel. About 95% of its 14,000 U.S. places to eat are owned by franchisees.
An administrative law decide with the labor board turned down the proposed settlement in July 2018, indicating it was unlikely to close the dispute and did not call for McDonald’s to enforce the settlement.
McDonald’s appealed to the entire board, which agreed with the enterprise. The case will now return to the administrative regulation judge, who has been directed by the board to approve the settlement.