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Post date: June 18 2014

A.G. Schneiderman Announces Resolution Of Mcdonald's Franchise Retaliation Investigation

McDonald's Franchisee In Upstate New York Agrees To Pay $10K To Employee Who Was Fired When He Reported Gas Leak To Fire Department

NEW YORK – Attorney General Eric T. Schneiderman today announced a settlement with Warrenone, Inc., a franchisee operating four McDonalds restaurants in Wayne and Monroe counties. The settlement resolves the Attorney General's investigation into the illegal firing of an employee at Warrenone's Lyons, New York location.

An investigation by the Attorney General’s Office found that on April 8, 2013, a part-time minimum-wage employee of the restaurant made multiple attempts to report a gas leak. When his supervisors did not address the situation, he reported the leak to the Lyons Fire Department. Responding firefighters and local law enforcement both confirmed that there was a gas leak, and the store was temporarily closed to the public for the night. While the firefighters were at the restaurant investigating the leak, two supervisors informed the employee that he was fired.

New York Labor Law Section 740 forbids employers from retaliating against an employee for reporting to a supervisor or to the authorities when an employer violates a law that poses a substantial and specific danger to public health and safety. The public health and safety issue reported here -- a gas leak -- involved a violation of provisions of the New York State Fire Code, among other things.

"It's outrageous that an employee would be terminated for contacting the local authorities about a serious safety risk. He should be thanked, not fired," saidAttorney General Schneiderman. "Workers who try to protect the public and their fellow employees deserve protection, and the state should have their back."

As a result of this settlement, the company will pay $10,000 in restitution which constitutes approximately one and one half years' worth of front pay in lieu of reinstatement for the discharged employee. Lost compensation was already obtained through enforcement by the federal Occupational Safety and Health Administration (OSHA) on May 17, 2013. Labor Law Section 740 does not provide for additional liquidated damages.

In addition to payment of restitution, Warrenone will create and implement procedures for complaints, and investigation of complaints, regarding health and safety in its restaurants. Warrenone will also report quarterly to the Attorney General about any health and safety complaints, and about the management’s response to those complaints.

The case was handled by Assistant Attorney General Kevin M. Lynch 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.

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