SAN FRANCISCO — McDonald’s has agreed to pay $3.75 million to settle a federal lawsuit that sought to hold the company liable on allegations that a franchise owner in the San Francisco Bay Area cheated hundreds of workers out of wages and overtime.
The settlement announced on Friday requires approval by a judge to take effect.
The lawsuit in federal court in San Francisco is among several in recent years that have sought a court order designating McDonald’s as the joint employer of workers at its franchise restaurants.
Joint employer status would hold the company and not just franchise holders responsible for restaurant working conditions.
The company said in a statement that it reached the settlement to avoid the costs and disruption of continued litigation.