Ex-McDonald's Franchise to Pay $211K in Fines

In a headline for a story Feb. 18 about a restaurant being fined for labor violations, The Associated Press erroneously described the restaurant as a McDonald's franchise. The headline should have made clear that the party being fined is a former McDonald's franchisee.


The U.S. Department of Labor says a former McDonald's franchise in central Pennsylvania has agreed to pay about $211,000 in back pay and fines for labor violations that affected 291 employees.
 
The Labor Department statement on Tuesday says that Cheung Enterprises LLC and president Andrew Cheung of Middletown took advantage of 178 foreign student workers and other employees by making improper deductions from paychecks or failing to pay overtime. Investigators also say the company charged the student workers excessive rent for substandard housing and deducted that from their paychecks.
 
A phone listing for Cheung Enterprises was no longer in service, and Cheung no longer operates any McDonald's franchises.

Copyright AP - Associated Press
Contact Us