Posts tagged $20 per hour
This New Labor Rule Could Be Trouble for McDonald’s
October 5, 2023 // McDonald’s and other franchise companies have made it clear they believe the stakes are high. The “reality is that our business model is under attack,” CEO Chris Kempczinski said of possible joint-employer regulations in a speech at a franchising industry conference in Las Vegas earlier this year, in remarks he also published on LinkedIn. Changes by the NLRB, he said, would transform franchisees “from independent small-business owners to employees of the parent brands.” Heightened joint-employer liability could hurt the franchise model in two main ways, according to the International Franchise Association. One possibility, along the lines of what Kempczinski described, is that a franchisor would exert more control over the franchisees. That undercuts one of franchisors’ big selling points to potential franchisees—that they’re offering a path to running their own business, with all of the freedoms that provides. It could also add compliance costs, and potentially, legal and liability expenses. Those increased costs are also a frequent worry for franchisees, says restaurant consultant John Gordon, principal at Pacific Management Consulting Group. Franchisees typically pay franchisors a percentage of their sales, and their profit comes after those fees and their operating expenses. Franchisees are “justifiably afraid of the franchisor passing costs onto them that weren’t part of the franchise agreement,” he says, and wary of joint-employer liability for that reason.
Gavin Newsom signs law raising minimum wage for California fast food workers. Here’s how much
September 28, 2023 // Future increases will be determined by the new nine-member council consisting of two representatives of the industry, two franchisees or restaurant owners, two employees, two advocates for employees and one neutral member of the public, who will serve as chair. It is set to hold its first meeting by March 1. Newsom pushed back against criticism that Californians will pay more for their Starbucks and McDonalds. He cited the The Fight for $15 movement, which raised the minimum wage to $10 per hour in 2016 and and $15 per hour last year.
Push in states for $20 minimum wage as inflation persists
March 30, 2023 // Cindy Lee, the owner of a bowling alley in Endicott, New York, said she’s struggling to pay off loans taken out during the pandemic that kept her business afloat. “All this cost all at once is just going to kill us. I definitely will have to cut corners somewhere with employees if wages are raised,” said Lee, adding that she’d also have to increase prices on bowling, food and liquor. The federal minimum wage in the United States has stayed at $7.25 per hour since 2009, but states and some localities are free to set higher amounts. Thirty states have chosen to do so.