Federal Government Seeks to Limit Wage Claims Against Large Chains

Recently, the U.S. Department of Labor released a proposal that would limit wage claims against chain corporations like McDonald’s for employment-law violations filed against franchise owners or contractors. This announcement comes just days after McDonald’s, the world’s largest restaurant chain, released a statement that it will stop lobbying in Congress against industry wage hikes.
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McDonald’s Joins Companies Nationwide that are Raising Wages

McDonald’s has recently taken measures to improve wages and benefits for its employees. However, these newly implemented policies will only affect those employed by the company stores, not franchisees. As part of the new benefits, employees will see an increase in salary to at least $1 above the local minimum wage, eligibility for time off, and a new program applying to all employees who wish to earn a high school diploma or fund their college education. 90,000 workers would be affected at 1,500 McDonald’s restaurants. This means that 90% of McDonald’s workers would not see these benefits as the majority of the restaurants are franchisee-owned.

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