McDonald’s $2.4M Wage & Hour Class Action Settlement

McDonald's employees classified as nonexempt for McNib Corp. dba McDonald’s in California at any time between Jan. 31, 2019, and April 8, 2024, may qualify to receive a cash payment from a class action settlement.

McNib Corp. agreed to pay $2.4 million to settle a class action lawsuit alleging the company failed to:

• Pay overtime and minimum wages
• Provide timely wages at termination
• Reimburse expenses
• Allow required meal and rest breaks
• Issue accurate wage statements

The plaintiffs claim these alleged failures violated California wage and hour laws.

Who is eligible for a McNib wage and hour payout?

Class members need meet the following criteria:

• They worked as a nonexempt (hourly) employee for McNib Corp. dba McDonald’s in California at any time between Jan. 31, 2019, and April 8, 2024.
• They worked as a nonexempt (hourly) employee for McNib Corp. in California between Feb. 13, 2022, and April 8, 2024 (the PAGA period).

How much can class members get?

• Individual class payments: Pro rata share based on the number of workweeks worked during the class period.
• PAGA payments: Pro rata share based on the number of pay periods worked during the PAGA period.

No claim form required

Class members do not need to submit a claim form to receive payment. The settlement administrator already has the employment records needed to determine eligibility and calculate payment amounts.

However, class members who wish to dispute the number of workweeks or pay periods credited to them may submit a written challenge with supporting documentation by July 25, 2025.

Settlement administrator’s mailing address: ILYM Group, Inc., P.O. Box 2031, Tustin, CA 92781

Payout options

Payments will be issued by paper check and mailed to the address on file for each class member. Class members whose address has changed should contact the settlement administrator at the address above to update their information.

$2.4 million McNib wage and hour settlement fund breakdown

The $2,400,000 settlement fund covers:

• Settlement administration costs: Up to $30,000
• Attorneys’ fees: Up to $800,000
• Attorneys’ expenses: Up to $30,000
• Service award to class representative: Up to $15,000
• PAGA penalties: $50,000 (75% to the state and 25% to employees)
• Payments to eligible class members: The remainder of the fund

Important dates

• Deadline to challenge workweeks/opt out: July 25, 2025
• Final approval hearing: Oct. 3, 2025

When is the McDonald’s settlement payout date?

Payments will be mailed to eligible class members approximately 28 days after the court’s final approval of the settlement.

Why is there a class action settlement?

The class action lawsuit alleged McNib Corp. dba McDonald’s violated California labor laws by failing to pay overtime, minimum wages, wages due upon termination, reimburse expenses and provide required meal and rest breaks. The lawsuit also claimed the company failed to provide accurate wage statements.

McNib Corp. denies all allegations and any liability but agreed to settle the case to avoid the expense and uncertainty of continued litigation.

Sources

1. Settlement Notice
2. Settlement Agreement