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

Paris Baguette

Photo of array of Paris Baguette pastries

Paris Baguette Redefines Morning Routines With Fresh Breakfast and Premium Coffee Strategy

paris-baguette-breakfast-strategy-growth

TruBlue Home Service Ally

TruBlue’s Home Maintenance Plans: Peace of Mind for Homeowners

trublues-home-maintenance-plans-peace-of-mind-for-homeowners

Caring Transitions

Caring Transitions Targets Peoria, Illinois, for Franchise Growth

caring-transitions-targets-peoria-illinois-for-franchise-growth

Caring Transitions Celebrates a Strong Start to 2025 With 19 New Franchise Sales and Momentum-Building Training Events

caring-transitions-celebrates-a-strong-start-to-2025-with-19-new-franchise-sales-and-momentum-building-training-events

Right at Home

Right at Home 30th Anniversary in Home Care with Right at Home Logo

Celebrating 30 Years of Excellence and Future Innovations in Home Care

celebrating-30-years-of-excellence-and-future-innovations-in-home-care

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 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

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands - 1851 Franchise

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands

doordash-acquistions-deliveroo-sevenrooms

Crumbl Franchise Investment - TSG Consumer Partners -  1851 Franchise

TSG Consumer Partners Takes Minority Stake in Crumbl, Signaling Franchise Growth Potential

crumbl-franchise-investment-tsg-consumer

Yum Brands Reports Strong Q1 Results with Big Boost from Taco Bell

yum-brands-reports-strong-q1-results-with-big-boost-from-taco-bell

QSR: McDonald’s Gains Momentum With Chicken Innovation, Value Deals and Franchisee Support

mcdonalds-franchise-recovery-chicken-strategy-value-deals-2025

The Future of Franchising: Trends and Predictions for 2025 and Beyond

the-future-of-franchising-trends-and-predictions-for-2025-and-beyond

Layoffs Surge to Pandemic-Era Highs, Opening Doors for Franchise Growth

layoffs-surge-to-pandemic-era-highs-opening-doors-for-franchise-growth

Franchisee spotlight image with Randy and Sandy Craft, Children's Lighthouse logo on blue background

The Crafts’ Successful Journey from New Parents to Children’s Lighthouse Franchisees

the-crafts-successful-journey-from-new-parents-to-childrens-lighthouse-franchisees

Franchisee spotlight graphic with photo of Amy Lepke and family and Papa Murphy's logo

After 14 Years as a Stay-At-Home Mom, Amy Lepke Returned to Papa Murphy’s — This Time as an Owner

papa-murphys-franchise-amy-lepke

Franchisee Spotlight with Micki Waters and Papa Murphy's Logo

Work Mom: How Micki Waters Became a Mother Figure to Her Entire Papa Murphy’s Team

work-mom-how-micki-waters-became-a-mother-figure-to-her-entire-papa-murphys-team

District Taco Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-district-tacos-franchise-costs-fees-profit-and-data

Franchisee spotlight image with photo of Robert Trujillo and UWRG logo on blue background

How Robert Trujillo Expanded His Construction Business With UWRG

how-robert-trujillo-expanded-his-construction-business-with-uwrg

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

MORE STORIES LIKE THIS