McDonald’s franchise settles sex harassment claims for $1.5 mln

(Reuters) – A McDonald’s franchisee in Michigan has agreed to pay $1.5 million to about 100 female workers who claim they faced severe sexual harassment by a single store manager, after a judge dismissed the fast food giant from the case.

Lawyers for the plaintiffs and the franchisee, MLMLM Corp, filed the proposed settlement in Lansing, Michigan federal court on Monday. MLMLM denied wrongdoing in the settlement, which must be approved by a judge.

The four named plaintiffs in the 2019 proposed class action claimed the longtime manager of the McDonald’s in Mason, Michigan subjected female workers to epithets, groped them and propositioned them for sex, and retaliated against employees who complained.

U.S. District Judge Hala Jarbou in December dismissed the plaintiffs’ claims that McDonald’s Corp was liable for the alleged misconduct because it failed to require franchisees to adopt anti-harassment policies.

Jarbou said McDonald’s could not be held liable under federal and state anti-discrimination laws because it was not the employer of franchise workers.

Workers have filed dozens of similar complaints against McDonald’s and its franchisees over the last few years, but the Michigan lawsuit was among the first brought as a class action.

McDonald’s has denied wrongdoing, and in April 2021 said it would begin requiring franchisees to adhere to anti-harassment policies. About 95% of McDonald’s 14,000 U.S. restaurants are franchises.

In a joint statement, the plaintiffs’ lawyers said McDonald’s Corp has not taken steps to implement its new policy, and that they were disappointed the company was not involved in settlement talks.

“It is unconscionable that McDonald’s continues to say ‘not it’ when it comes to sexual harassment of workers at its franchise locations,” said Darcie Brault of McKnight, Canzano, Smith, Radtke & Brault.

Lawyers for MLMLM did not immediately respond to a request for comment. Nor did McDonald’s.

The case is Ries v. McDonald’s USA LLC, U.S. District Court for the Western District of Michigan, No. 1:20-cv-0002.

For the plaintiffs: Darcie Brault of McKnight, Canzano, Smith, Radtke & Brault; Gillian Thomas of the American Civil Liberties Union

For McDonald’s: Elizabeth McRee of Jones Day

For MLMLM Corp: Thomas Ludden of Lipson Neilson

Read more:

McDonald’s workers sue over sexual harassment, ‘toxic’ work culture

McDonald’s faces class action over ‘pervasive sexual harassment’

McDonald’s to train employees to combat harassment, discrimination

McDonald’s faces 25 new sexual harassment complaints from workers

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