Closed
Johnson v. McDonald's COBRA Notice Settlement
Payments were automatic, no claim form was ever required. The court approved the settlement in early 2023, and checks were mailed to all class members who did not opt out.
Case record
- Case
- Ashley Johnson v. McDonald's Corporation
- Case no.
- 1:21-cv-24339-FAM
- Court
- U.S. District Court for the Southern District of Florida, Miami Division
- Defendant
- McDonald's Corporation
- Administrator
- American Legal Claim Services
- Settlement fund
- $156,782.50
The case
What this settlement was about
This class action alleged that McDonald's sent former employees a deficient COBRA election notice, the notice that explains how to continue health coverage after leaving a job. The notice allegedly failed to include an address for mailing COBRA payments, omitted a physical election form, and did not identify the plan administrator, in violation of COBRA and ERISA notice requirements.
McDonald's denied the allegations and maintained its notice was fully compliant, but agreed to a $156,782.50 settlement covering an estimated 8,959 health plan participants and beneficiaries who received the notice between December 2017 and February 2021 and did not elect COBRA coverage.
No claim form was required: anyone who did not opt out automatically received a check by mail. The per-person amounts were small, roughly $17.50 gross, about $7 to $10 net after fees and costs, because the case turned on a notice defect rather than proven out-of-pocket harm. ERISA's statutory penalties for defective COBRA notices, which can reach $110 per day, gave the claims their settlement value.
The class
Who was covered
All participants and beneficiaries in the McDonald's Corporation Health Plan who received a COBRA notice between December 15, 2017 and February 9, 2021 as a result of a qualifying event and did not elect COBRA coverage, an estimated 8,959 people.
- What class members could receiveApproximately $17.50 gross per class member, an estimated $7 to $10 net after court-approved fees, costs, and administration, mailed automatically with no claim form required.
- Proof requirementMost class members could file without proof of purchase.
Docket timeline
How the settlement unfolded
- December 2017 – February 2021Deficient notices sent
The challenged COBRA election notice went to departing McDonald's health plan participants during this period.
- December 2021Class action filed
Ashley Johnson sued McDonald's in the Southern District of Florida.
- January 15, 2023Exclusion and objection deadline
Class members who wanted out had to opt out by this date; no claim form was needed to be paid.
- Early 2023Final approval
The final approval hearing was held February 8, 2023, and the court approved the settlement.
- 2023Checks mailed
Checks went out automatically and had to be cashed within 180 days; uncashed funds went to Bay Area Legal Services as the cy pres recipient.
Questions people still ask
Frequently asked questions
Did I need to file a claim in the McDonald's COBRA settlement?
No. Every class member who did not opt out automatically received a check by mail after final approval in early 2023. Checks had to be cashed within 180 days.
How much did the McDonald's COBRA settlement pay?
About $17.50 gross per person, reduced to roughly $7 to $10 after court-approved attorneys' fees, costs, and administration expenses came out of the $156,782.50 fund.
What was wrong with the COBRA notice?
The lawsuit alleged the notice failed to include an address for mailing COBRA payments, omitted a physical election form, and did not identify the plan administrator, all information COBRA and ERISA require so departing employees can actually continue their health coverage.
Was this a wage or discrimination case against McDonald's?
No. Despite the case name, this settlement was solely about the wording of the health-coverage continuation notice McDonald's sent departing employees. It was one of a wave of similar COBRA notice class actions filed in Florida federal courts.
What happened to uncashed checks?
Funds from checks not cashed within 180 days were donated to Bay Area Legal Services, a Tampa-area nonprofit legal aid organization, as the court-approved cy pres recipient.
Sources for this record
Official site johnsonvmcdonaldssettlement.com has been retired. Record preserved by TapClaim.
