Wage and Hour Rights at McDonald's: Overtime, Breaks, and Off-the-Clock Work (USA)

When you experience a wage violation or other workplace problem, your first legal claim is typically against your direct employer—the franchisee. However, the line between franchisee and McDonald’s Corporation isn’t always clear. McDonald’s sets strict standards for everything from uniforms and menu items to staffing levels and scheduling. In some cases, courts and government agencies have found that McDonald’s Corporation is a “joint employer” with the franchisee, meaning both can be held responsible for certain violations. This is an evolving area of law, and outcomes can vary by state and by the facts of your case.

Key implications:

• If you’re underpaid or denied overtime, you may have claims against both the franchisee and, in some cases, McDonald’s Corporation.

• Lawsuits and settlements—like the $26 million California case—sometimes involve only corporate-owned stores, but franchise workers have also won claims.

• The “joint employer” question is especially important for class actions and union organizing, as it determines who must bargain or pay damages.

Federal Wage and Hour Basics for Fast Food Workers

The Fair Labor Standards Act (FLSA) sets the baseline for pay and hours in fast food. Most McDonald’s workers are “non-exempt,” meaning you’re entitled to:

• At least the highest applicable minimum wage (federal, state, or local),

• Overtime pay (1.5x your regular rate) for hours over 40 in a workweek,

• Pay for all hours worked, including pre-shift and post-shift duties,

• Protections for youth workers (limits on hours and types of work for those under 18).

Tip: In states like California and New York, minimum wages are much higher than the federal rate. Always check your local law.

Overtime: When and How It’s Calculated

Overtime is due for all hours over 40 in a workweek. In some states, like California, you’re also entitled to daily overtime for hours over 8 in a day. Your overtime rate must include all forms of pay—base wage, shift differentials, and certain bonuses. Common violations include:

• Not paying overtime when you work more than 40 hours,

• Manipulating time records to avoid overtime,

• Splitting hours between locations,

• Pressuring workers to clock out and keep working.

Meal and Rest Breaks

Federal law doesn’t require meal or rest breaks for adults, but many states do. In California, for example, you’re entitled to a 30-minute unpaid meal break after 5 hours and a paid 10-minute rest break for every 4 hours worked. If you’re denied these breaks, or if you’re called back to work during a break, you may be owed extra pay. Always check your state’s requirements.

Off-the-Clock Work: What Must Be Paid

You must be paid for all time you’re required to work, not just your scheduled shift. This includes:

• Pre-shift setup, putting on uniforms (if required at work),

• Post-shift cleanup,

• Mandatory meetings or training,

• Work during unpaid breaks,

• Waiting time if you’re required to stay on the premises.

If you’re asked to clock out but keep working, or if breaks are automatically deducted even when you work through them, that’s a violation.

The $26 Million California Settlement

This landmark case involved 38,000 California McDonald’s workers and covered unpaid overtime, missed breaks, off-the-clock work, and inaccurate wage statements. The settlement provided back pay and required McDonald’s to change its practices. While this case involved corporate stores, similar violations can occur at franchises, and workers in other states have also won claims.

Common Wage Violations at McDonald’s

• Time shaving: Editing time records to reduce hours.

• Off-the-clock work: Requiring work before clocking in or after clocking out.

• Break violations: Not providing required breaks or interrupting them.

• Overtime avoidance: Sending workers home before 40 hours, splitting hours, or misclassifying employees.

• Minimum wage violations: Deductions or unpaid time that bring pay below minimum wage.

• Uniform deductions: Requiring workers to pay for uniforms, which may be illegal if it reduces pay below minimum wage.

How to Track Your Hours and Identify Problems

Don’t rely solely on your employer’s records. Keep your own log of:

• Actual clock-in and clock-out times,

• Breaks (start/end, interruptions),

• Any work done off the clock,

• Schedules and pay stubs.

Compare your records to your pay stub. If the numbers don’t match, or if your effective hourly rate is below minimum wage, there’s a problem.

Filing a Wage Complaint

If you spot violations:

• Talk to your employer (if safe)—sometimes errors can be fixed internally.

• File with the Department of Labor (DOL) or your state labor agency. The DOL can recover back wages and penalties.

• Consult a private attorney—many work on contingency and can pursue claims the government won’t.

• Class actions are possible if many workers are affected.

• Time limits: Federal claims have a 2-3 year window; state limits vary.

Retaliation is illegal: If you’re punished for raising wage concerns, report it immediately. This is a separate violation.

Using Caira to Analyze Pay Stubs and Policies

Caira can help you:

• Review pay stubs and time records for errors,

• Compare employer policies to state and federal law,

• Calculate potential back wages,

• Prepare documentation for a complaint.

Upload your documents and ask Caira questions like, “Is this overtime calculated correctly?” or “Does this break policy comply with my state’s law?”

Review Checks for Wage Issues

• Do you have your own records of hours and breaks?

• Have you compared your records to your pay stubs?

• Are you aware of your state’s wage and hour laws?

• Are you within the time limits for filing a claim?

• Have you considered internal and external complaint options?

The franchise model can make enforcing your rights more complicated, but it doesn’t make them disappear. Wage theft is widespread in fast food, but workers have successfully fought back—sometimes against both franchisees and McDonald’s Corporation. Document everything, know your rights, and don’t hesitate to seek help if you suspect violations.

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This information is for educational purposes and is not legal, financial, or tax advice. Outcomes vary depending on the evidence submitted and its strength. Employment law differs by state, and individual circumstances matter.