Two McDonald’s franchise operators have agreed to a $3.55 million class action settlement to resolve claims that workers were not properly paid for short meal breaks.
The lawsuit alleged that employees at restaurants owned by UTB Enterprises LLC and Goldenband LLC in Oregon were required to take meal breaks that were shorter than 30 minutes — but were not paid for that time.
Under Oregon law, hourly workers must be paid when meal periods are less than 30 minutes during shifts of six hours or longer. Workers argued that the unpaid time added up to significant wage losses.
The companies denied any wrongdoing but chose to settle in order to avoid a lengthy and expensive legal fight.
Who Is Eligible?
The settlement covers current and former employees who worked at the affected McDonald’s locations dating back to March 8, 2014.
Payments will vary depending on how long employees worked during the covered time period:
- Workers with 0–10 eligible workweeks are expected to receive roughly $31.
- Workers with 11 or more eligible workweeks could receive up to about $870, depending on the number of claims filed.
A claim form must be submitted before the court-approved deadline, and the settlement still requires final approval from a judge.
Why This Case Matters
The settlement highlights ongoing scrutiny of labor practices across the fast-food industry — particularly at franchise-owned locations, where wage and hour laws must still be followed even though restaurants are independently operated.
McDonald’s and its franchise operators have faced similar lawsuits over the years involving:
- unpaid wages
- missed or unpaid breaks
- scheduling violations
While each case is different, worker advocates say these lawsuits continue to push chains toward tighter compliance with labor laws.
