McNib Corp. dba McDonald's Agrees to $2.4M Wage-and-Hour Settlement

McNib Corp. doing business as McDonald's agreed to a $2.4 million settlement that resolves a putative class action alleging widespread wage-and-hour violations in California. The case, Paul Papel v. MCNIB Corp., Case No. 30-2023-01304958, challenged employee classification and accused the company of failing to provide required meal and rest breaks, underpaying overtime and minimum wages, failing to pay timely final wages, and issuing inaccurate wage statements.

The settlement covers an eligible class period running from January 31, 2019, through April 8, 2024, with a separate PAGA period noted in the settlement materials. Claim Depot updated its settlement notice on January 18, 2026, reflecting final terms and procedural instructions; the notice was originally posted June 2, 2025. Under the agreement, the administrator will use employer payroll records to calculate base distributions and will mail checks to eligible employees without requiring individual claim forms for the base payout.

Employees who believe their credited workweeks or pay periods are incorrect may submit a challenge to the administrator by a stated deadline. The settlement administrator is ILYM Group, which will handle questions, disputes, and distribution logistics. The notice indicates that payments are typically mailed about 28 days after the court grants final approval, though any appeals could delay the timeline.

For workers and shift supervisors, the settlement carries both immediate and broader workplace implications. For eligible crew members, shift leads, and other hourly staff, the most tangible result will be mailed payments that represent back wages, penalties, or other recovery tied to the alleged violations. More broadly, the case underscores common friction points in restaurant operations: accurate timekeeping, proper classification of roles, enforcement of mandatory breaks, and clear final-pay procedures when employment ends. Employers and franchise operators may face closer scrutiny of scheduling practices and payroll recordkeeping going forward.

What employees should do now is straightforward: watch the mail for a notice and check any paperwork from ILYM Group; if payweeks or records look wrong, submit a challenge by the deadline specified in the settlement materials; and contact the settlement administrator for details or disputes. The payout timetable depends on court final approval and the absence of appeals, so distributions may not be immediate.

The settlement provides a path to recovery for affected workers and highlights ongoing accountability pressures on fast-food employers in California. For now, eligible McNib employees should expect communication from the administrator and plan to verify that mailed amounts match their records.