KFC rest breaks class action settles for $29m

Current and former KFC employees who alleged that they weren’t provided with rest breaks during their shifts are set to share in a $28.8 million settlement, agreed to by the fast-food giant and its franchisees.

In October 2023, Gordon Legal commenced a class action, supported by the fast-food and hospitality industry, the SDA, against KFC and its franchisees, seeking compensation for employees who did not receive 10-minute rest breaks in the past six years.

Now, a settlement of $28.8 million has been reached with KFC and over 80 franchise operators across the country. Approximately 90,000 current and former KFC team members will be eligible for compensation, if the settlement is approved by the Federal Court.

The settlement was unveiled in court last week, following an agreement reached between the applicants and KFC over several months. At a further hearing next month, the court will be asked to order a “registration period” during which affected workers must register their interest to receive compensation.

Gordon Legal senior associate Guy Tiffany said the settlement outcome was an example of what collective action can achieve.

“This is a large settlement which will compensate many thousands of workers, and one which we think will send a powerful message to the fast-food giants and other employers of inexperienced workers. Regardless of your size and brand power, compliance cannot depend on convenience,” he said.

“We are pleased that KFC and franchisees have taken a sensible approach to this case, which will result in a fair outcome for thousands of young workers.”

SDA national secretary Gerard Dwyer added that the settlement will enable payments to thousands of existing and former KFC employees across the country.

“The SDA urges McDonald’s, which is in a similar position, to settle with the SDA on behalf of their current and former employees who did not receive the paid rest breaks to which they are entitled,” he said.

Lead applicant Roshanpal Singh said the settlement justifies the decision to stand up to KFC about this longstanding issue.

“Like a lot of young people, this was one of my first real jobs. You don’t question things; you just show up and do what you’re told. But looking back, those rest breaks weren’t a luxury; they were something we were legally owed,” he said.

“This settlement matters, not just for the money, but because it shows that big companies can’t just ignore their obligations. I’m glad we stood up and did something about it, and I hope other young workers see this and know that they have rights worth fighting for.”