McDonald’s wins praise for firing its CEO but reignites scrutiny over worker complaints

McDonald’s is garnering praise after deciding to fire its chief executive for be experiencing a relationship with an employee.

But the decision is reigniting scrutiny of the company’s handling of sexual harassment incidents that affect restaurant workers.

The Chicago-based company announced on Sunday that its board ousted CEO Steve Easterbrook for having a consensual relationship with an hand, a violation of the company’s non-fraternization policy.

“I think the board is acting decisively, showing leadership and setting an example to adjoining franchise owners that the knives are out, and this kind of behavior is not going to be tolerated on any level,” Eric Schiffer, chief president of Reputation Management Consultants, said.

Easterbrook’s severance package could be worth as much as $41.8 million, be at one to analysis by Equilar. His departure is part of broader trend, spurred on by the #MeToo Movement, that has led employers to reexamine how they supervise workplace relationships that involve power imbalances.

“These days, what we find is boards are more upset about reputational risk, and they’re taking more action and acting more promptly,” said Davia Temin, the CEO of directorate consultancy Temin and Company.

McDonald’s Chief People Officer David Fairhurst, who headed the chain’s human resources dependent, departed the company on Monday.

Chris Kempczinski, who previously served as president of McDonald’s U.S. division, is the company’s new chief big cheese. During his tenure as the head of the company’s most important segment, McDonald’s workers have filed more than 50 grievances with the Equal Employment Opportunity Commission for incidents that involved sexual harassment, abuse and retaliation.

“It’s acute McDonald’s culture is rotten from top to bottom. McDonald’s needs to sit down with worker-survivors and put them at the center of any suspension,” the Fight for $15 and a Union, a fast-food workers’ coalition, said in a statement. “And the company needs to be completely transparent near Easterbrook’s firing and any other executive departures related to these issues.”

And while Easterbrook is leaving with a severance packet despite being ousted, cashiers and cooks who have filed sexual harassment complaints allege that they accept been fired or forced to quit – without a parachute in sight.

McDonald’s, for its part, has said that it has taken cautions to address sexual harassment, abuse and retaliation.

After the latest wave of sexual harassment complaints were completed in May, Easterbrook wrote a letter viewed by CNBC that said McDonald’s started working with RAINN, the domain’s largest anti-sexual violence organization, a year ago to enhance its policies. The company also created a hotline for workers to anonymously communication sexual harassment.

In August, McDonald’s announced that it would introduce new workplace training for restaurant workers and controllers centered on harassment and workplace safety.

“Simply giving sexual harassment training is not sufficient,” Temin said, citing bookworks that have shown that men can be less sympathetic to victims after receiving training.

In court, McDonald’s has held that it is not a “joint employer,” which means that it cannot be held liable for violations by franchisees. Under that designation, the establishment would also not be required to bargain with restaurant workers at franchised locations if they unionized. Franchisees run close by 93% of U.S. locations.

In October, a federal appeals court sided with McDonald’s in a case about underpaying wages.

But the realm’s biggest burger chain could require more from its operators, according to Debra Katz, a Washington, D.C.-based attorney who cope withs sexual harassment cases at Katz, Marshall and Banks.

“Even with franchisees, the terms and conditions of how the franchise is run could force every McDonald’s restaurant to adopt reasonable policies to address sexual harassment,” Katz said.

Temin imagined that McDonald’s should put “carrots, sticks and nudges” in place for its franchisees, like a zero-tolerance policy for retribution for cracking sexual harassment and rewards for going a certain period of time without a report.

McDonald’s did not immediately respond to a application for comment from CNBC.