According to nyc.gov the owner of seven (7) different McDonald's locations within the Brooklyn, New York area, George Michell is ordered to pay 511 workers $1.1 million in penalties and restitution.
Vilda Vera Mayuga, the commissioner of the Department of Consumer and Worker Protection (DCWP) announced the settlement on Monday, October 31, 2022 after an investigation that began in 2019. According to the lawsuit, the franchisee will pay $1 million in restitution to 511 employees, including $23,500 in restitution to two employees who were terminated in retaliation for exercising their rights under the Fair Workweek Law, and pay $92,338.86 in civil penalties. They will also be required to come into compliance.
Vilda Vera Mayuga (DCWP) said, "Today, we are sending a clear message to any employer who fails to come into compliance. We will not allow employers to repeatedly defy the City’s laws. Fast food workers deserve fair treatment in their workplaces, and we will ensure that they receive justice and restitution."
This isn't the DCWP's first investigation with George Michell. In 2019, there were multiple complaints from employees at the Atlantic and Vanderbilt Avenue McDonald's location, which resulted in the company having to pay $34,865 in restitution to 92 workers and $3,635 in civil penalties. After the first settlement, DCWP received new worker complaints from the same location, which alleged continued noncompliance with the Fair Workweek Law. Due to the serious nature of the alleged ongoing violations, which pointed to company-wide compliance issues, DCWP opened a second investigation and expanded it to all seven of the franchisee’s Brooklyn McDonald’s locations.
DCWP’s second investigation found that, between February 2019 and December 2020, the franchisee continued to violate the Fair Workweek Law by:
Failing to pay required schedule change premium pay.
Failing to obtain employee consent to work additional hours.
Failing to provide current employees with access to hours before hiring new employees.
Required employees to work “clopening”(closing shifts, followed by opening shifts) shifts without their written request or consent.
Failing to pay $100 premiums to employees who worked “clopening” shifts.
Retaliating against two employees for exercising protected rights under the Fair Workweek Law.
The investigation also found that the franchisee violated the NYC Paid Safe and Sick Leave Law by prohibiting employees from using paid sick leave. The settlement includes worker compensation for these violations as well.
The Fair Workweek Law, which went in affect in 2017 states that fast food employers in New York City must give workers regular schedules, work schedules 14 days in advance that are consistent with the regular schedule, premium pay for schedule changes, the opportunity to decline to work additional time, and the opportunity to work newly available shifts before hiring new workers. Fast food employers also cannot schedule a “clopening” shift unless the worker consents in writing and receives a $100 premium to work the shift. Further, fast food employers cannot fire or reduce the hours of a worker by more than 15 percent without just cause or a legitimate business reason. The required “NYC Fast Food Workers’ Rights” must be posted in any language that is the primary language of at least five percent of the workers at a workplace if available on DCWP’s website. The Fair Workweek Law also protects retail workers. Under the retail provisions of the law, retail employers must also give workers 72 hours of advance notice of work schedules and may not schedule workers for on-call shifts or change workers’ schedules with less than 72 hours of notice.
Below, you can find a list of all seven (7) Michell McDonald's locations that were covered by the investigation:
840 Atlantic Avenue, Brooklyn, NY 11238
968 Fourth Avenue, Brooklyn, NY 11232
3525 Fort Hamilton Parkway, Brooklyn, NY 11218
1656 Utica Avenue, Brooklyn, NY 11234
880 Coney Island Avenue, Brooklyn, NY 11218
1275 Fulton Street, Brooklyn, NY 11216
5121 Fifth Avenue, Brooklyn, NY 11220
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