Judge Gives Early Approval of McDonald’s $2M Wage Deal

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The revised $2 million settlement between the class of 5,500 current and former workers and McDonald’s of California, was given early approval by the judge.

The Case: Gennifer Manzo v. McDonald’s Restaurants of California, Inc.

The Court: U.S. District Court of the Eastern District of California

The Case No.: 1:20-cv-01175-HBK

The Plaintiff: Gennifer Manzo v. McDonald’s Restaurants of California, Inc.

The plaintiff in the case, Gennifer Manzo, worked as a shift manager at McDonald’s in Clovis, California. Manzo filed the lawsuit in 2020 on behalf of other similarly situated employees under California’s Labor Code and PAGA. Manzo alleged McDonald’s failed to provide employees with accurate wage statements reflecting their correct pay rates and total hours worked. Gennifer Manzo was joined by a class of 5,500-plus employees in California who allegedly received inaccurate wage statements.

Early Approval of Settlement: Gennifer Manzo v. McDonald’s Restaurants of California, Inc.

While Magistrate Judge Helena M. Barch-Kuchta offered early approval of the settlement deal; she did voice multiple concerns regarding the details of the settlement. The judge made sure to voice concerns that the attorneys’ fees requested were one-third the total amount of the settlement. She was also concerned that the proposed service fee award of $1,000 for the case’s lead plaintiff, was also higher than typical in a class action case. In fact, she specified that it was 46 times the average class member’s payout. According to the proposed settlement deal, class members receive roughly $1.88 million; which would mean approximately $216 per class member on average.

More About Settlement Details: Gennifer Manzo v. McDonald’s Restaurants of California, Inc.

The judge also questioned the hourly rates of the attorneys; they failed to articulate if their rates were within the normal range for the Bay Area/Los Angeles. She noted that no details were provided about legal work completed for the case. The settlement deal also included $100,000 for penalties under California’s Private Attorneys General Act and $30,000 for settlement administration costs.

If you have questions about California employment law or if you need to file a wage and hour lawsuit, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.