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McDonald’s beats back challenge to settlement with U.S. labor agency -Breaking

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© Reuters. FILE PHOTO A McDonald’s sign can be seen in San Diego on March 31, 2015. REUTERS/Mike Blake

By Daniel Wiessner

(Reuters:) A dispute between a U.S. labor regulator and a union-backed group challenging McDonald’s Corp’s (NYSE) settlement over claims McDonald’s helped franchisors to suppress demonstrations by workers demanding higher wages was defeated Friday by McDonald’s Corp.

U.S. Court of Appeals, D.C. Circuit dismissed claims made by Fight For $15 that the 2019 settlement was insufficient because it didn’t resolve the crucial question about whether McDonald’s can be held responsible for illegal labor practices by its franchisees.

Fight For $15 stated that a member the National Labor Relations Board, (NLRB), who participated in the approval of the settlement’s finalization had a conflict and should have been disqualified. D.C. Circuit said Friday that those claims weren’t properly submitted to the court.

McDonald’s Illinois and the NLRB didn’t immediately reply to comments. Fight For $15 did not provide a lawyer.

Fight for $15 organized demonstrations across the country, calling for minimum wage of $15 per hour. This group began filing complaints against the NLRB that year on behalf of McDonald’s employees claiming they had been fired or disciplined because they participated in labor organizing.

In 2014, McDonald’s and other franchisees were sued by the NLRB. This case was a test for the Obama-era NLRB’s efforts to broaden the scope of companies that could be “joint employees” of contract or franchise workers. It required them to negotiate with unions, and exposed them to labor law violations.

McDonald’s denies wrongdoing. They maintain that McDonald’s is not able to exercise sufficient control over franchises in order to be considered joint employers.

The NLRB settled the case shortly after Donald Trump was elected, which disappointed unions and workers advocates. Although the settlement allowed more than 20 McDonald’s franchise owners to make individual payments of up to $50,000 each to workers, it did not resolve McDonald’s liability.

The federal labor law provides that the board may settle any claims made against businesses by workers and/or unions.

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