1851

Three Black McDonald's employees <a href="https://www.law360.com/articles/1319204/mcdonald-s-hit-with-4th-race-bias-suit-by-black-workers-?utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-faces-another-lawsuit-over-alleged-harassment-of-black-workers-and-diners-2714085" target="_blank" rel="nofollow">filed an anti-discrimination lawsuit</a> against the chain in the U.S. District Court for the Central District of Illinois this week.&nbsp;The plaintiffs, who worked at a Rock Island, Illinois location, claim that the restaurant's general manager called Black employees and diners "ghetto" and that other workers referred to Black employees in a derogatory manner. The plaintiffs also claim that Black employees were granted fewer work hours than non-Black employees, and that when plaintiff Stephanie Stevens approached management about discriminator language used toward plaintiff Selynda Middlebrook, Stevens was fired immediately.McDonald’s has been accused of allowing toxic workplace culture to thrive at both the corporate and store level for years, and though the QSR giant has denied these accounts, allegations continue to surface.&nbsp;This Illinois case is the latest in a series of discrimination lawsuits slapped against the Golden Arches this year. In August, <a href="https://1851franchise.com/mcdonalds-faces-1-billion-discrimination-lawsuit-from-52-black-ex-franchise-owners-2713798">52 Black ex-franchisees sued the chain</a> for allegedly "steering plaintiffs to locations with low-volume sales and higher operating costs, such as higher security costs due to crime, higher insurance rates, and higher employee turnover.” A suit in January also accused the company of <a href="https://1851franchise.com/dozens-of-black-mcdonalds-franchisees-are-cutting-ties-with-the-golden-arches-2711810">pushing Black executives from senior leadership</a> under former <a href="https://1851franchise.com/mcdonald-s-ceo-steve-easterbrook-fired-over-relationship-with-employee-2711491">CEO Steve Easterbrook</a> and current CEO Chris Kempczinski, as well as forcing Black operators out of the system.&nbsp;"The top-down systemic racism evident in McDonald's C-suite, as evidenced by recent allegations by Black executives and Black franchisees, reaches down to the restaurant level, where individual managers and franchisees are not held accountable for engaging in, and failing to prevent, discrimination on the basis of race," the complaint states.The employees are also suing franchisee Gendco Inc., which is named as a joint employer in the case. Trina Gendron, the Rock Island McDonald’s franchisee, <a href="https://www.nrn.com/quick-service/mcdonald-s-faces-fourth-racial-discrimination-lawsuit-black-workers?utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-faces-another-lawsuit-over-alleged-harassment-of-black-workers-and-diners-2714085" target="_blank" rel="nofollow">told Nation's Restaurant News</a>, "I am deeply committed to running a values-led organization, and discrimination, harassment or retaliation of any kind are not tolerated in my restaurants. I take these allegations seriously and am currently reviewing the complaint and investigating these allegations."&nbsp;This question of whether McDonald’s should be held accountable for one franchisee’s actions is certainly nothing new. The lawsuit's attempt to hold McDonald's responsible for the Rock Island franchisee's alleged discrimination as a joint employer resurfaces issues from a previous case.&nbsp;In December 2019, <a href="https://1851franchise.com/national-labor-relations-board-mcdonalds-is-not-a-joint-employer-2711854#stories">McDonald's scored a major labor win when the National Labor Relations Board absolved the chain as a joint employer from responsibility for labor violations</a> brought forward eight years prior by the <a href="https://1851franchise.com/the-fight-for-15-4261">Fight for $15</a> and other labor organizations. The ruling suggested that in the future, restaurants would not have to pay for their franchisee's illegal activities because those operators would be dealt with as entities independent of the corporate restaurant parent. While this was a big win for restaurant chains, critics noted that it took away even more power from labor groups.&nbsp;This year, <a href="https://1851franchise.com/nlrb-finalizes-ruling-to-reduce-joint-employer-liability-for-franchisors-2712391#stories">the NLRB then clarified the joint employer rule in February</a>, protecting franchisors from being on the hook for labor infractions committed by their franchisees. But last month, <a href="https://1851franchise.com/mcdonalds-joint-employer-appeal-has-been-denied-by-the-nlrb-2713896">the House Committee on Education and Labor subpoenaed the NLRB for alleged ethical violations involving the December ruling</a>, and is also investigating the agency's decision to narrow the joint employer rule in February. <a href="https://www.jdsupra.com/legalnews/southern-district-of-new-york-judge-30707/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-faces-another-lawsuit-over-alleged-harassment-of-black-workers-and-diners-2714085" target="_blank" rel="nofollow">The U.S. District Court for the Southern District of New York also held that the latest final joint employer rule conflicted with the Fair Labor Standards Act</a> and was "arbitrary and capricious" because the Department of Labor "failed to adequately justify its departure from its prior interpretations" and didn't account for the impact of the rule on workers.If the December ruling and the updated joint employer definition processes are found to be unethical, it could mean that the chain will be responsible for the consequences of this new lawsuit and any future ones. The implications for the chain are significant, as 95% of McDonald's U.S. system is franchised, and as the largest franchisor in the world, the results of the lawsuit will likely create a precedent for the industry as a whole.

McDonald's Faces Another Lawsuit Over Alleged Harassment of Black Workers and Diners

1851 Franchise

This lawsuit adds to a growing number of allegations of racism and discrimination at McDonald's and also resurfaces joint-employer issues from a previous case.

mcdonalds-faces-another-lawsuit-over-alleged-harassment-of-black-workers-and-diners

BooXkeeping

image of booxkeeping franchise graduation present

Why a BooXkeeping Franchise Might Be the Smartest Graduation Gift You Can Give

booxkeeping-franchise-graduation-gift

KidStrong Franchising, LLC

image of kidstrong franchisees NFL player Shaun Wade and his former Team USA Heptathlete wife Jordan

Why This Athlete Couple Chose To Open a KidStrong Franchise

nfl-player-shaun-wade-kidstrong-franchise-georgia

HomeTeam Inspection Service

Team of home inspectors exiting branded HomeTeam Inspection Service vehicle

HomeTeam Inspection Service Offers Franchise Opportunity With No Experience Required

hometeam-franchise-training

Comfort Keepers

image of comfort keepers employees franchise

Comfort Keepers® Partners With PocketRN to Enhance Dementia Care Nationwide

comfort-keepers-pocketrn-dementia-care-partnership

Right at Home

Right at Home Franchise - Q3 2025 Momentum - 1851 Franchise

Right at Home Continues Momentum as It Closes Out the Third Quarter and Looks Ahead To Hit Its Annual Signings and Openings Goal by the End of the Year

right-at-home-franchise-q3-2025

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Photo of Papa Murphy's Take 'N' Bake Pizza franchisee Lily Wilford

Entrepreneur: This 18-Year-Old Saves Babysitting Money for College — Then Decided to Buy a Business Instead

18-year-old-franchise-owner-lily-wilford

Amazon outage, AWS outage, Amazon AWS logo

The Day the Cloud Stalled: How Amazon's Outage Impacted Franchise Economy

amazon-aws-outage-franchise-impact-travel-dining-failure

Thursday 1851 Franchise Agg - NASAA’s Noncompete Push

NASAA’s Noncompete Push Puts Franchise Growth on Uncertain Ground

franchise-noncompete-nasaa-advisory-reasonableness-standard

How a Steady Economy Could Help Franchisors Plan Their Next Move

how-a-steady-economy-could-help-franchisors-plan-their-next-move

Bed Bath & Beyond - Franchise Expansion - Retail Strategy - 1851 Franchise

Bed Bath & Beyond Launches Franchise Model as Part of Comeback Strategy

bed-bath-beyond-franchise-expansion-retail-strategy

NJCAR v. Ford - New Jersey Supreme Court Limits Standing Under Franchise Practices Act

New Jersey Supreme Court Limits Standing Under Franchise Practices Act

new-jersey-franchise-practices-act-njcar-v-ford

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Senior Entrepreneurship - Franchising - 1851 Franchise

Senior Entrepreneurship Is Rising — And Franchising Is a Key Outlet

senior-entrepreneurship-franchising-silver-startups

A Practical Playbook: Who To Call First When Franchising Your Business

franchising-your-business-who-to-call-first

image of jerome hanway from right at home Las Cruces, New Mexico 1851 franchise franchisee spotlight

Jerome Hanway Is Building His Right at Home Franchise Around His Mission To Serve

right-at-home-franchise-las-cruces-jerome-hanway

graphic image of an 1851 franchisee spotlight brayden and johnny steven of teriyaki madness

Father-and-Daughter Team Bring Teriyaki Madness to Wichita, Kansas, With Big Expansion Plans

johnny-brayden-steven-teriyaki-madness-wichita

image of franchise deep dive from 1851 franchise on doody calls franchise authority brands

DoodyCalls Franchise Costs, Fees, Profit and Data for 2025

doodycalls-franchise-deep-dive

image of michael panos and michel panos, owners of mellow mushroom in Atlanta

McDonald's Faces Another Lawsuit Over Alleged Harassment of Black Workers and Diners

MORE STORIES LIKE THIS