When fast-food workers began walking off the job to demand a $15-an-hour minimum wage in 2012, McDonald’s was at the center of the fight. The fast-food chain resisted workers demanding higher pay for a number of years, though ultimately capitulated, saying it wouldn’t oppose policies to increase the minimum wage at the state or local level. Given the chain’s previous opposition, it was somewhat surprising to see McDonald’s recently call on its restaurant-industry colleagues to pay their workers more. McDonald’s opposes low wages for restaurant workers. In early September, McDonald’s CEO Chris Kempczinski spoke out against the tipped minimum wage, which allows establishments like restaurants and bars to pay their tipped workers as little as $2.13 an hour, as long as they earn the federal minimum of $7.25 when tips are included. This practice creates “an uneven playing field,” Kempczinski told CNBC. The issue even led McDonald’s to pull out of the National Restaurant Association, the lobbying organization that opposes movements like Fight for $15. McDonald’s, of course, has a dog in the fight, as it’s not able to take advantage of the tipped minimum wage. Meanwhile, competitors like Chili’s are able to save labor costs by paying their workers below the federal minimum, and in turn offer prices on par with McDonald’s, the Wall Street Journal reported. How tipped wage policies are affecting HR. McDonald’s is the biggest fast-food chain to put its thumb on the scale with regards to the tipped minimum wage, but the debate has already prompted policy changes at the state and federal level—with implications for HR teams. For more on what HR needs to know about calls to end the tipped minimum wage, keep reading here.—CV |