WILKES-BARRE, Pa. – In a story Oct. 25 about a legal settlement reached with the owners of 16 McDonald’s restaurants over the use of fee-laden debit cards to pay employees, The Associated Press erroneously reported the size of the settlement, the amount of the individual payouts and the number of recipients. The settlement was for $1 million, not $3 million. Eight lead plaintiffs, not the entire class of 2,400, will collect $1,250 each. Remaining plaintiffs who filed settlement forms before the deadline, a number McDonald’s put at just under 300, will receive $100 plus reimbursement of any fees incurred.
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A corrected version of the story is below:
McDonald’s owners who paid workers with debit cards settle
The owners of 16 McDonald’s restaurants in Pennsylvania are paying $1 million to settle a lawsuit claiming they violated state law by paying hourly employees strictly with fee-laden debit cards
WILKES-BARRE, Pa. (AP) — The owners of 16 McDonald’s restaurants in Pennsylvania have reached a $1 million settlement over claims they violated state law by paying hourly employees strictly with fee-laden debit cards.
A state appellate court last year upheld a lower court finding that the payroll cards were not “lawful money” or a “check,” as required under Pennsylvania wage law. That decision paved the way for the settlement.
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The judge’s order Tuesday shows franchisees Albert and Carol Mueller will pay $1,250 each to eight lead plaintiffs. Remaining plaintiffs who filed settlement forms before the deadline, a number McDonald’s put at just under 300, will receive $100 plus reimbursement of any fees incurred.
Plaintiffs’ attorneys will receive $858,000 in fees and court costs.
Both sides had previously announced the settlement, but not its terms.
The cards had required employees to pay fees for bank withdrawals, online bill payments and other charges.
