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KFC Agrees to Settle Wage and Hour Claims

Just a few months after the Kentucky-based fast-food chain company was ordered to pay $8.3 million for a brain injury claim, KFC is now facing another lawsuit filed by thousands of its employees.

According to news reports, the fast-food giant recently agreed to settle the class action lawsuit filed by its 13,000 employees in different locations in California since 2005.

As part of the settlement, KFC agreed to pay $3.55 million aside from other related reliefs.

The settlement was the result of an approximately seven years of effort of the thousands of employees who claimed that the fast food restaurant failed to provide all meal and rest breaks and to pay overtime hours worked.

Under the California employment laws, employers should provide employees who work for more than five hours with a meal break of at least thirty minutes. On the other hand, if an employee works for more than five hours without having meal break, said employee is entitled for an overtime pay. In addition, employers are required to provide employees with a paid 10-minute rest period for every four hours worked.

Incidentally, KFC maintains a strict policy in all of its locations which require employees to request permission from a manager before being able to take any breaks. Unfortunately, in most circumstances, employees are often denied the break periods they deserve, especially when the restaurants were too busy.

Furthermore, KFC also had a policy requiring all employees during closing shift to log out when the store had closed so that sales information could be transferred immediately from the cash registers to the restaurant’s main database. In such event, employees’ overtime works were not compensated due to their inaccurate log-out times.

Meanwhile, although both parties have agreed to settle the class action lawsuit last month, the agreement is still pending approval until present but the decision is expected to be handed down this month.

Accordingly, to help speed up such claim, employees are reminded that it is important to make sure that the initial report should be detailed and informative before submitting the same to a local office of the Division of Labor Standards Enforcement (DLSE).

Posted in wage and hour claim.


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