McDonald’s New Lawsuit Proves the Brand May Have a Long Road Ahead

Today, a former McDonald’s employee in Michigan filed a sexual assault lawsuit against the chain, blaming her mistreatment on what she called a culture of sexual harassment. The suit, filed on Tuesday, comes as hundreds of McDonald’s employees in Michigan are planning to go on strike to protest the company’s handling of such allegations and demand a labor union.

The class-action lawsuit comes barely a week after Steve Easterbrook was fired for having a relationship with an employee. Now, McDonald’s new CEO Chris Kempczinski is set to inherit some major challenges, with sexual harassment initiatives being at the very top of the list.

Clearly, there is a lot of work still to be done to stop sexual harassment from occurring at McDonald's restaurants. Last fall, McDonald’s workers in 10 cities went on strike to draw attention to the sexual harassment they face and demanded that the chain do more about the problem. 

In May, twenty-five women across 20 U.S. cities filed lawsuits or complaints against McDonald’s, alleging they experienced sexual harassment while working for the chain. Under Easterbrook, the brand responded by launching an anonymous sexual harassment hotline. In September, the allegations caught the interest of lawmakers when more than 100 local government officials from 31 states wrote McDonald's a letter urging the chain to create more stringent anti-sexual harassment policies.

Of course, McDonald’s is certainly not the only chain that has navigated sexual harassment issues. Sexual harassment is more common in the restaurant space than in any other industry, according to the Harvard Business Review. As many as 90% of women and 70% of men in the industry have reported some form of sexual harassment. 

Not only are these types of issues costly for franchisors to defend, but they also rightfully contribute to a negative workplace environment, which can ultimately affect customer service. A reduction of harassment incidents can also lower turnover, which is more important than ever. McDonald’s needs to implement a comprehensive and systemwide training program that covers sexual harassment for employees, management and franchisees. 

Following Easterbrook’s termination, McDonald’s shares are falling, but it has yet to be seen as to what this means for the future of the company. Clearly, with this recent lawsuit and strike, the chain has a long way to go.