McDonald’s reaches settlement in ‘joint-employer’ lawsuit

NEW YORK (AP) — McDonald’s says it has reached a settlement with a U.S. labor agency over a lawsuit that could have decided if the fast-food company should be liable for hiring, pay and other decisions made at its franchised restaurants.

The lawsuit, filed in 2016 by the National Labor Relations Board, contended that McDonald’s should be considered a “joint employer” with its franchises. But the settlement, if approved by a judge, would squash that.

NLRB did not immediately respond to a request for comment.

McDonald’s Corp., based in Oak Brook, Illinois, says the settlement is the first step toward ending “wasteful multi-year litigation.”

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