McDonald’s Tactic of Minimally Raising Workers’ Wages Insults A 2 Year Protest

US fast food workers are typically paid the prevailing federal minimum wage of $7.25 an hour. At $7.25 an hour, a worker putting in a 40 hour work week, without missing one week or hour of work all year, would earn $1,160 dollars a month or $13,920 a year. McDonald’s is also accused of hiring two part time workers in place of one full time employee in order to avoid paying health insurance and benefits. In return for these low wages, McDonald’s brought in 4.76 billion dollars in net profit in 2014.

For the past two years, fast food workers have been campaigning for higher wages. The national campaign “Fight for $15.00” has been focused on achieving a $15.00 an hour wage. $15.00 an provides workers with a $2,400 a month or $28,800 a year wage. Despite worker demands, McDonald’s announced they will raise certain workers wages $1.00 above the federally mandated minimum wage and offer paid vacation time.

The immediate impact of McDonald’s announcement will be limited. Roughly 90% of McDonald’s restaurants are owned privately through franchises, with the remaining 10% owned by the corporation itself. McDonald’s franchise owners are currently free to determine their own wages and benefits, despite what the McDonald’s Corporation does for the employees of the corporate owned stores. The new announcement applies only to the workers’ employed with the McDonald’s Corporation stores, meaning the increase applies immediately to less than 10% of all employees of McDonald’s.

McDonald’s tactics may pressure the franchise owners to follow suit for other McDonald’s employees. An increase in costs for the franchise owners may result in franchise owners raising the price of menu items. This in turn would benefit the McDonald’s corporation because franchise owners pay a fee to the corporation based on a percentage of sales.

McDonald’s is feeling pressure from the corporation shareholders for increased profits. In 2012 the company reported a net profit of 5.46 billion and in 2013 the company saw a net profit of 5.59 billion. Given the 2014 net profit of 4.76 billion, McDonald’s in under pressure for better results. This pressure often results in employers cutting corners and violating wage and hour laws.

McDonald’s employees across several states have also recently filed more than two dozen safety complaints against McDonald’s regarding unsafe working conditions. Over the past two weeks, employees from 28 restaurants have filed complaints with the Labor Department’s Occupational Safety and Health Administration. The complaints allege safety violations ranging from a lack of safety gear to demands by employers to clean excessively hot oil, resulting in burn injuries.

Common Wage and Hour Violations

Employers under shareholder pressure for results often try to cut corners in order to keep costs down. These violations entitle workers to reimbursement for their harms and looses. Some common wage and hour violations are:

  • Minimum Wage Violation: Employers attempting to pay less than the mandated federal minimum wage of $7.25 an hour are violating wage and hour laws.
  • Unpaid Breaks: Federal laws prohibit employers from forcing employees to work through lunch breaks unpaid.
  • Unpaid and Underpaid Overtime: For ever hour an employee works in excess of 40 hours in a single week, the employee is entitled to pay that is 1.5 times their normal wage.
    • Comp Time: Employers violate wage and hour laws when they force a worker to work more than 40 hours in a single week for their normal hourly pay and then work less hours the following week so the two weeks average to 40 hours a piece, despite working 60 hours in week one and 20 hours in week two. This practice violates the federal mandate that a worker be paid time and a half if they work more than 40 hours in a single 7 day period.

Click here to learn more about other common wage violations.

Recent News

See What's Happening

  • St. Louis Bicycle Accident Claims
    Jan04

    St. Louis Bicycle Accident Claims

    While there are fewer cyclists on the roads than cars and trucks, the injury and mortality rates are much higher than the average motorist....
  • Missouri Dog Bites On the Rise
    Jan04

    Missouri Dog Bites On the Rise

    Dog bites in the US? Nearly 4.5 million per year, according to Insurance Information Institute, dog bites accounted for more than $600 million in...
  • Dog Bite Claims and Homeowners Insurance
    Oct03

    Dog Bite Claims and Homeowners Insurance

    Unless you have experienced a dog bite you are unlikely to realize how serious dog bites can be. In fact they can be so...
  • Insurance Companies Accused of Fake Repairs
    Feb21

    Insurance Companies Accused of Fake Repairs

    Those suffering from an accident need their vehicle repaired so they can get back to work, attend medical appointments, and meet the other demands...
  • Most Dangerous Intersections in Missouri
    Feb14

    Most Dangerous Intersections in Missouri

    Data analyzed from 2005-2010 shows that St. Louis is home to the most dangerous intersection in Missouri. Learn more about Missouri's most dangerous intersections...
  • Distracted Driving Accidents On The Rise
    Feb10

    Distracted Driving Accidents On The Rise

    Distracted driving continues to cause unnecessary suffering. Missouri is home to some of the most lenient laws in the United States when it comes...

Personal Injury Attorney

Legal & Injury Representation St. Louis Deserves.

Results — that's what clients expect from Dixon Injury Firm. Chris brings years of personal injury law experience to the table. Based in St. Louis, his firm provides free consultations and contingency service to the high-caliber injury and liability legal arena. Tell us about your case and we'll show you how to win.

Recent Successes

  • Policy Limits Settlement

    Missouri Truck Accident

    $30,000.00 Settlement

    Missouri Car Crash With Minor Property Damage

  • $40,000 Settlement

    Missouri Low Impact Automobile Accident

    $40,000 Settlement

    Missouri Dog Bite

  • $45,000 Settlement

    Missouri Dog Bite

    $50,000 Settlement

    Missouri Auto Accident

  • $50,000 Settlement

    Missouri Car Accident Crash

    $65,000 Settlement

    Missouri Pedestrian Accident

Get The Representation You Need Today!

Reach out to Chris Dixon for personal injury, workers compensation, product liability, and other legal services for experienced, reliable counsel and representation in St. Louis.

Contact Us Today

Schedule a
Callback

 

Submit Your
Case Details