Antitrust Law Daily Wrap Up, FRANCHISE & DISTRIBUTION NEWS: DOJ settles immigrant-employee discrimination claim against McDonald’s, (Nov 20, 2015)

By Linda O’Brien, J.D., LL.M.

The Justice Department has reached a settlement with McDonald’s USA LLC and its corporate affiliates resolving allegations that McDonald’s discriminated against immigrant employees of corporate-owned McDonald’s restaurants, the department announced yesterday.

The department’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) opened its investigation based on information received on its worker hotline.The investigation found that McDonald’s had a longstanding practice of requiring lawful permanent residents to show a new permanent resident card when their original document expired, even though the law prohibits this practice.The investigation further found that the company did not make the equivalent request to its U.S. citizen employees who showed documents that later expired, and that those lawful permanent residents who were asked and could not provide a new card were not allowed to work, some even losing their jobs as a result.

The investigation and settlement agreement only address actions by McDonald’s and not its franchises.

Under the settlement agreement, McDonald’s will pay $355,000 in civil penalties to the United States, undergo monitoring for 20 months, and train its employees on the Immigration and Nationality Act’s (INA) anti-discrimination provision. The settlement agreement also requires McDonald’s to compensate lawful permanent resident employees of McDonald’s-owned restaurants who lost work or lost their jobs due to the documentary practices.

Lawful permanent residents have authorization to live and work in the United States on a permanent basis.As proof of that status, a lawful permanent resident receives a permanent resident card, commonly called a “Green Card,” but lawful permanent residents are eligible for multiple documents that show their eligibility to work.Lawful permanent residents do not have to show their permanent resident cards when they start working.Like all workers, they can choose whatever valid documentation they want to establish their employment authorization.

While most permanent resident cards contain an expiration date, as a general matter, card holders have permanent work authorization so the expiration of the card does not mean they lose their right to work or their status.Lawful permanent residents who decide to show an unexpired permanent resident card are not required to present any additional documentation when their card expires, and employers cannot request additional documents from them.Moreover, the anti-discrimination provision of the INA prohibits employers from placing additional documentary burdens on work-authorized employees during the employment eligibility verification process because of their citizenship or immigration status.

Companies: McDonald’s USA LLC

News: FranchisingDistribution