McDonald's franchisee reaches agreement with the state in sexual harassment case

Hyder Investments has agreed to strengthen policies and to hold regular workplace trainings.

January 18, 2023 at 10:06PM
A McDonald’s franchisee has reached an agreement to resolve a sexual harassment case with the Minnesota Department of Human Resource (Gene J. Puskar, AP/The Minnesota Star Tribune)

A McDonald's franchisee has agreed to strengthen its sexual harassment policies and hold regular trainings on workplace conduct at its 14 restaurants to resolve a lawsuit by the Minnesota Department of Human Rights.

The state filed a consent decree Wednesday laying out the negotiated agreement with the franchisee, Hyder Investments, in Hennepin County District Court.

In December 2021, the Human Rights Department joined a lawsuit against the franchisee alleging the company fostered a culture of sexual harassment and failed to intervene after a 24-year-old manager at a McDonald's in Maple Grove repeatedly sexually assaulted a 14-year-old employee at work. The lawsuit was initially filed by the teen's mother.

The manager later pleaded guilty to a count of criminal sexual misconduct.

The lawsuit contended that supervisors knew about the assaults but did nothing to stop them. It also said that the franchisee provided a telephone number made up of "X"s instead of real numbers for employees to call to report sexual harassment.

As part of the consent decree, Hyder has agreed to create and enforce policies that prevent and address sexual harassment and make them easily accessible to employees. They must be provided in all languages spoken by workers.

The franchisee also committed to regular training and to put in place multiple ways employees can report unwelcome conduct, harassment or other complaints, including a 24-hour telephone or email hotline, and to allow reporting parties to remain anonymous.

The company has agreed to talk about these issues at biannual employee meetings, including a portion of the meeting when supervisors are not present so employees can speak more freely, and to work with human resources on a report to track employee concerns and actions taken in response.

The terms of the agreement will remain in effect for three years.

"This consent decree means that these McDonald's restaurants are now safer for employees," Minnesota Department of Human Rights Commissioner Rebecca Lucero said in a statement. "Sexual harassment in the fast-food industry has long been a reality and this consent decree serves up much needed reform."

An attorney for Hyder Investments did not respond to a request for comment. But the company's president, Shahab Hyder, previously denied the allegations and said that the claims "go against everything we stand for as an organization."

The attorney for the teenager's mother notified the court last month that her client had reached an out-of-court agreement with the franchisee.

about the writer

about the writer

Kavita Kumar

Community Engagement Director

Kavita Kumar is the community engagement director for the Opinion section of the Star Tribune. She was previously a reporter on the business desk.

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