McDonald's owners who paid workers with debit cards settle

AP News
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Posted: Oct 25, 2017 9:50 AM

WILKES-BARRE, Pa. (AP) — The owners of 16 McDonald's restaurants in Pennsylvania are paying nearly $3 million to settle a lawsuit claiming 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.

The judge's order Tuesday shows franchisees Albert and Carol Mueller will pay $1,200 to each of the nearly 2,400 plaintiffs. The plaintiffs' attorneys will also receive $858,000 in fees and court costs.

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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.