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To:Brew Readers
McDonald’s says “no” to the tipped minimum wage.

It’s Friday! Still need weekend plans? Might we suggest a silent-reading book club? Charge your social battery while reading quietly among friends before putting down your book to socialize. Sounds like a dream for introverts—and HR pros who need to unwind after a long week.

In today’s edition:

I’m (not) lovin’ it

We want your input

By the numbers

—Courtney Vinopal, Adam DeRose, Natasha Piñon

TOTAL REWARDS

McDonald's

Scott Olson/Getty Images

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

Presented By Equifax

TECH

stoplight that says AI on the red light

Olaser/Getty Images

As companies rush to deploy AI across their organizations—especially in areas related to their workforce—shaping policies and guardrails to safely and compliantly use the technology has become top of mind for many.

Information security experts told IT Brew during a live event on AI governance last month that this isn’t simply an IT problem. It’s one that requires cross-functional considerations.

“First of all, it’s a shared responsibility,” said Guru Sethupathy, founder and CEO of AI governance platform FairNow. “Ultimately, you still want someone who’s a decision maker, because you don’t want to get lost in paralysis by analysis…That could be a new role.”

In addition to IT leaders, legal and compliance teams also need to weigh in. Business units, too, have a stake in this. HR’s role is particularly important because of the sensitivity of decisions being made with these tools.

For more on what HR should know about AI governance, keep reading here.—AD

RECRUITMENT & RETENTION

Service jobs decline

Tara Moore/Getty Images

Activity in the US service sector halted as new orders slowed in September, the Institute for Supply Management reported last week.

Employment in the service sector also remains “in contraction territory, thanks to a combination of delayed hiring efforts and difficulty finding qualified staff,” Steve Miller, chair of the services business survey committee at the ISM, said in a statement.

The ISM survey offers some much-needed insight into at least one aspect of the labor market after the US government shutdown delayed the release of September’s jobs numbers, which might not be released until the government opens again.

For more on the data, keep reading on CFO Brew.—NP

Together With Equifax

WORK PERKS

A desktop computer plugged into a green couch.

Francis Scialabba

Today’s top HR reads.

Stat: Nearly half (46.4%) of IRS employees are furloughed due to the government shutdown. (CNBC)

Quote: “As a working parent, I know how expensive and stressful childcare can be…For federal workers going without pay, that cost can be crushing. They’re still showing up, still caring for their families, and still serving their country, even as this administration continues to turn its back on them.”—Minnesota Rep. Ilhan Omar, on the introduction of a bill that aims to reimburse federal workers for childcare costs accrued during the government shutdown (House.gov)

Read: Is it better to respond to a meeting invite with a “maybe” or a “no”? The answer will surprise you. Maybe. (the Wall Street Journal)

Seamlessly streamlined: Level up your employee journey with Equifax. They help you manage onboarding, retention, and offboarding, with helpful automation throughout the process. HR teams get back bandwidth and employees get stronger support. Learn more.*

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