NY AG ANNOUNCES $500K SETTLEMENT WITH SEVEN MCDONALD'S IN NYC

(The following is a reformatted version of a press release
issued by the Office of Attorney General Eric T. Schneiderman
and received via electronic mail. The release was confirmed by
the sender.) 
A.G. SCHNEIDERMAN ANNOUNCES $500k SETTLEMENT WITH SEVEN MCDONALD'S RESTAURANTS 
IN MANHATTAN* 
"Owner Richard Cisneros And The Companies Must Pay Restitution To More Than 
1,600 Workers For Unpaid Laundry Allowances, Uncompensated Work Time And 
Unlawful Wage Deductions " 
"Schneiderman: We Will Enforce New York Labor Law In The Fast Food Industry" 
NEW YORK – Attorney General Eric T. Schneiderman today announced a settlement 
totaling almost $500,000 with seven New York City McDonald's restaurant 
franchises and their owner Richard Cisneros for failing to pay legally-required 
laundry allowances for many employees, for uncompensated work time and for 
unlawful deductions from wages that resulted when cashiers were required to 
cover cash register shortfalls. The settlement money, which includes damages 
and interest, will go to more than 1,600 mostly minimum wage workers who were 
shortchanged by these franchises.  
The settlement is the second to come out of ongoing investigations of numerous 
fast food employers by the Attorney General’s Labor Bureau for labor law 
violations. In December, the Attorney General secured reinstatement for twenty 
five workers at a Domino's pizza franchise located in Washington Heights, in 
New York City.  
“Like every other business in New York State, fast food employers must follow 
our labor laws,” *Attorney General Schneiderman* said. “Our lowest wage workers 
deserve the same protections of the law as everyone else. It’s critical, for 
them and for their families as well as for our economy, that we remain vigilant 
so that no New Yorkers are cheated out of their hard won earnings.”  
The seven restaurants, all in Manhattan, are located at 280 Madison Ave., 1499 
3rd Ave., 1872-74 3rd Ave., 809 6th Ave., 427 10th Ave., 871 2nd Ave., and 18 
East 42nd St. 
Attorney General Schneiderman’s investigation found that from 2007 to July 
2013, the Cisneros Group restaurants failed to pay certain of their 700 
cashiers at the restaurants for time periods when they were required to work 
“off-the-clock” before and after some of their shifts. The restaurants also 
required some cashiers to make up cash register shortages out of their own 
money when the registers were short of funds at the end of the workers’ shifts. 
In addition, when a business requires employees to wear uniforms like the ones 
in this case, New York law requires employers either to launder the uniforms, 
provide sufficient wash and wear uniforms for each day of the work week, or pay 
employees a "uniform maintenance allowance," in an amount set by law, in order 
to cover the employees' costs of laundering the uniforms. However, Cisneros 
and his companies did not pay employees the uniform maintenance allowance 
required by law. More than half of the settlement money will go to reimburse 
uniformed workers who were not paid this allowance as required. Other 
violations included failure to pay workers an extra hour of pay at minimum wage 
when they worked more than 10 hours in a day, as required by New York law. 
The Attorney General thanks New York Communities for Change, which referred 
worker complaints to his office.  
*Jonathan Westin, executive director of New York Communities for Change*, said, 
“I want to commend Attorney General Schneiderman for investigating the owner of 
seven McDonald's franchises for what amounts to wage theft. This money will go 
to workers who should have received it in the first place. This settlement, and 
the $3.9 million settlement the Attorney General reached earlier this month for 
car wash workers, is a clear signal that unscrupulous owners will not be 
tolerated and that we will continue to fight on behalf of these workers. 
McDonald's must ensure that its franchise holders abide by the law and treat 
workers fairly.” 
Further information about Attorney General Schneiderman’s settlement with car 
wash owners can be found here [ 
http://www.ag.ny.gov/press-release/ag-schneiderman-announces-nearly-4m-settlemen
t-two-nyc-car-wash-chains-underpaying ]. 
In addition to paying the restitution funds, the settlement with the Attorney 
General also requires the seven franchises to submit to monitoring of their 
labor law compliance. The Cisneros Group restaurants will also institute 
complaint procedures, provide bilingual written handbooks to employees, train 
supervisors on the labor law, and post a statement of employee's rights. 
A claims administrator overseen by the Attorney General’s Office will determine 
how much each of the more than 1,600 employees will be reimbursed, depending on 
the specific employment facts of each employee. The restaurants do business as 
ERC Food Corp., Angel 3rd Avenue Corporation, Anghec, Inc., Angel 10th Ave. 
Food Corporation, JHC Corp., EJJ Food Corp., and John C Food Corp.  
The case was handled by Assistant Attorney General Elizabeth Wagoner and 
Special Counsel Patricia Kakalec in the Attorney General’s Labor Bureau, which 
is led by Bureau Chief Terri Gerstein. Executive Deputy Attorney General for 
Social Justice is Alvin Bragg. 
(rml) NY
 
 
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