Hadsell Stormer Renick & Dai LLP
Free Consultations 626-381-9261

McDonald's named in discrimination lawsuit involving franchise location

According to the International Franchise Association, an estimated 18 million U.S. workers currently work at a franchise. This equates to roughly "one out of eight U.S. private-sector jobs." The franchise model has long been regarded as a successful business model that provides for the growth and financial security of both the franchisor company and individual franchisee. However, the future of franchising in the U.S. may soon look very different as one of the largest and most successful franchises was recently named as a defendant in a workplace discrimination lawsuit. 

Approximately 90 percent of McDonald's Corporate restaurants are franchises. Traditionally, individual franchise stores are considered separate business entities from a franchisor. This distinction protects a franchisor from being legally responsible for the business operations at franchise locations including acts of alleged employment discrimination and harassment as well as wage and hour disputes. 

However, ten former McDonald's employees have named the fast-food giant in a  discrimination lawsuit, asserting the corporation's company wide policies exert a level of control over individual franchise locations that equates to responsibility for actions that occur at individual franchise locations. 

The former employees have filed a lawsuit in which they accuse McDonald's of committing acts of sexual harassment, racial discrimination and wrongful termination. According to the lawsuit, the workers assert they were subjected to groping, racial taunts and other acts of egregious discrimination before being told by managers that "too many black people" worked at the franchise locations, one of which was also described by a manager as being "ghetto." 

If the plaintiffs, in this case, are successful in pursuing legal action against and holding McDonald's Corporate responsible, it could open the floodgates for similar action in several other lawsuits that are currently pending against individual McDonald's franchise stores. 

Source: The Huffington Post, "Workers Sue McDonald's For Discrimination, Opening New Front In Franchise Fight," Dave Jamieson, Jan. 22, 2015

No Comments

Leave a comment
Comment Information
    • The National Trial Lawyers | Top 100 Trial Lawyers
    • Top Listed In Best Lawyers | The World's Premier Guide
    • Americas Top 100 2017 | Criminal Defense Attorneys
    • AV Preeminent Martindale-Hubbell Lawyer Ratings
    • Super Lawyers | Rising Stars 2018
    • Best Lawyers US News 2016
    • The National Trial Lawyers | Top 40 Under 40
    • proud fellow of american bar foundation
    • 2018 Top 100 Lawyer ASLA
    • SuperLawyers Rising Stars 2018

Have You Been Victimized?

Speak to an attorney who will fight for you.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Email Us For A Response

Pasadena Office
128 N. Fair Oaks Avenue, Suite 204
Pasadena, CA 91103

Phone: 626-585-9600
Fax: 626-577-7079
Map & Directions

Downtown Los Angeles Office (Legal Fund)
250 1st Street, Suite 1201
Los Angeles, CA 90012

Phone: 213-785-6999
Map & Directions

Free Consultations

Tel: 626-381-9261
Toll-free: 866-457-2590