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Wednesday, October 14, 2026

McDonald's defeats legal challenge from Fight for $15 - HRD America

Settlement required many McDonald's franchisees to pay up to $50,000 to individual workers

The ice cream machine might work today, as McDonald’s celebrates a legal victory against a decade-long rival.

In 2012, a political movement called Fight for $15 swept the United States, with workers calling for minimum pay of $15 an hour. The union-backed group began filing complaints with the National Labor Relations Board (NLRB) on behalf of McDonald’s franchise workers, claiming they were fired or disciplined for participating in labor organizing.

In 2014, the NLRB brought a case against McDonald’s and its many franchisees. The government agency’s goal was to expand the circumstances in which companies could be considered “joint employers” of franchise or contract workers, requiring them to bargain with unions and exposing them to liability for labor law violations. The global fast-food chain denied wrongdoing, arguing that it doesn’t exercise enough control over franchises to be considered a joint employer.

Under federal labor law, the NLRB can settle claims against businesses over the objections of unions or workers involved in a case. That’s exactly what happened in 2019, as McDonald's was ordered to pay up to $50,000 to individual workers, the New York Times reported. However, the settlement didn’t include a concession that the Chicago-based company was a joint employer.

Fight for $15 challenged the settlement, and today, an appellate court has ruled in McDonald’s favor.

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