Berkshire Insurer Sues McDonald’s Franchisees Over Job Pay Cases

A Berkshire Hathaway Inc. insurance unit sued a pair of McDonald’s Corp. franchise operators in Washington state seeking to avoid paying any judgment in a proposed class action alleging they failed to disclose salary ranges in job postings.

The underlying litigation filed in Washington state court alleges the franchisees, Comwell Co. and KTC LLC, failed to follow the state’s pay transparency law. Washington is one of several states that enacted job pay disclosure requirements in recent years.

The allegations in the proposed class action fall under a maximum $250,000 “wage and hour” sublimit to help insured parties defend against claims ...