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News Release

Iowa McDonald’s Franchise Pays Employee Back Wages After Wrongly Denying Paid Leave Due to Coronavirus-Related School Closure

ONAWA, IA After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Kastim Corp. – operator of a McDonald’s franchise in Onawa, Iowa – has paid an employee $573 in back wages for wrongly denying the worker’s request for paid leave to care for children due to school closures related to the coronavirus pandemic.

WHD investigators found Kastim Corp. violated the Emergency Family Medical Leave Extension Act provisions of the Families First Coronavirus Response Act (FFCRA) when it denied the employee paid time away from work to care for children whose school had closed due to the coronavirus. When advised of its obligations under the FFCRA, the company agreed to pay the back wages.

“Employers must take all necessary steps to comply with the Families First Coronavirus Response Act and provide employees paid sick leave to care for themselves and family members when required,” said Wage and Hour District Director Marcy Boldman, in Des Moines, Iowa. “The U.S. Department of Labor is working to protect employees’ rights and educate employers during the coronavirus pandemic. With thousands of parents returning to work while many schools remain closed, employers should use this case as an opportunity to review their obligations under this new law to avoid similar violations and ensure that they provide the benefits and protections required.”

WHD encourages employers and employees to call the division directly for assistance to better understand the requirements under the FFCRA and use its educational online tools to avoid violations.WHD offers updated information on its website and through extensive outreach efforts to ensure that workers and employers have the information they need about the benefits and protections of this new law.

The FFCRA helps the U.S. combat and defeat the workplace effects of the coronavirus by giving tax credits to American businesses with fewer than 500 employees either to provide employees with paid leave for the employee’s own health needs or to care for family members. Please visit WHD’s “Quick Benefits Tips” for information about how much leave workers may qualify to use, and the wages employers must pay. The law enables employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus. 

WHD provides additional information on common issues employers and employees face when responding to the coronavirus and its effects on wages and hours worked under the Fair Labor Standards Act and on job-protected leave under the Family and Medical Leave Act at

For more information about the laws enforced by WHD, call 866-4US-WAGE, or visit

For further information about the coronavirus, please visit the Centers for Disease Control and Prevention.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis-Bacon Act and the Service Contract Act, and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

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Wage and Hour Division
June 26, 2020
Release Number
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
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