Settling three separate class actions, CKE, the franchisor of Carl's Jr.'s, La Salsa and Hardee's, agreed to pay $9 million and take a $7 million charge to resolve claims involving overtime pay for former and present restaurant managers. The class actions alleged that the franchisor improperly classified restaurant managers as exempt employees under California's wage and hour laws. The company denied any wrongdoing but claimed that the settlement resolved the plaintiffs' claims without the need for expensive and protracted litigation.
Posted by franchiselawblog at August 9, 2004 04:33 PM