August 20, 2020

In an Uncommon Move, McDonald’s Sues Former CEO

It’s not every day that a blue chip company decides to sue a former executive, let alone its erstwhile CEO, but this is exactly what McDonald’s did by suing Steve Easterbrook, who had been fired last year for inappropriate conduct, specifically, sexting with an employee. Easterbrook, who received his severance payment after being cleared by an internal investigation of any additional wrongdoing, was accused by another employee last month of carrying on a sexual relationship with them during Easterbrook’s tenure at McDonald’s. 

Under other circumstances, this might not have resulted in a lawsuit from McDonald’s, but the company alleges in the suit that Easterbrook concealed evidence of this relationship during the company’s original investigation last year. He is also accused of lying and compensating at least one person with whom he had a relationship with company stock, which McDonald’s wants back. 

After the initial investigation, McDonald’s decided, as is common among large companies, to fire Easterbrook with as little fanfare as possible. This included providing Easterbrook with his severance and stock options. However, a clause in his contract stipulated that if McDonald’s later determined that Easterbrook should have been fired “with cause” then it would be open season on these payments. And, with the new revelations this summer, this is exactly what McDonald’s has chosen to do.

While the public way in which this is playing out is uncommon, this series of events is not and we think it is a good example of one of things we often counsel clients on: when you’re being investigated, the cover up may be worse than the crime itself.

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Employers Should Heed Doctor’s Advice When Accommodating Workers

October 6, 2020
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According to Peeples v. Clinical Support Options, Inc., No. 3:20-CV-30144-KAR, 2020 WL 5542719 (D. Mass. Sept. 16, 2020), providing the plaintiff with a mask was insufficient accommodation, holding “a majority of these so-called accommodations are workplace safety rules rather than an individualized accommodation to address Plaintiff’s disability.”

Employer-based Health Insurance on Shaky Ground

September 29, 2020
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Employer-provided health care schemes are under severe strain and those who have already been laid off have been struggling to shore up the gaps in their coverage, all during a global health crisis.

Is Unemployment Keeping People from Returning to Work?

September 23, 2020
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Wen Congress passed the CARES Act back in March, which included a temporary boost in unemployment benefits for people affected by the pandemic, there was bound to be controversy. But new research is showing that unemployment benefits and enhanced jobless security is not the deterrent employers believe it to be. There is plenty of anecdotal evidence to suggest as such, and now, according to the New York Times, there is data driven evidence to back this up.

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