Landmark McDonald’s lawsuit could affect over 300,000 workers

McDonald's
One witness is claiming to have been denied 827 paid breaks

A mammoth case being heard in the Federal Court against McDonald’s could affect more than 300,000 workers, according to the Shop, Distributive and Allied Employees Association (SDA Union).

It centres around the provision, or alleged lack thereof, of 10-minute paid rest breaks for McDonald’s employees, which they were entitled to under both the McDonald’s Australia Enterprise Agreement 2013 and the Fast Food Industry Award.

McDonald’s has historically denied these allegations, arguing that it always works with its franchisees to comply with the Fast Food Industry Award.

The SDA said it has more than 100 witnesses scheduled to give evidence in the nine-week-long trial. One witness alleges having been denied 827 paid 10-minute rest breaks, which accounts for 8270 minutes of unpaid work, or 18 working days.

While the case alleges that McDonald’s franchisees denied a worker their right to a break, the SDA says that the fast-food giant itself is an accessory to the breaches. The union is seeking compensation for the workers allegedly denied paid rest breaks, and the issuance of fines to McDonald’s and its franchisees, if found to be in breach of the law.

“It shouldn’t take a huge federal court case for McDonald’s to just do the right thing,” SDA national president, Michael Donovan, said. “McDonald’s should admit what they did was wrong and pay these impacted workers what they are owed.”

Inside Retail has contacted McDonald’s for an updated comment, now that the case has begun.

The case follows KFC’s landmark settlement in February 2026, which saw the company agree to a $28.8 million payment to employees over the granting of 10-minute paid breaks, following a case brought forward by both the SDA and Gordon Legal. Burger restaurant Grill’d is also defending itself from allegations over 10-minute paid breaks in a class action lawsuit, heard in the Federal Court of Australia.

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