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McDonald’s workers at company-owned stores to get raises

A McDonald's restaurant in Mason City, Iowa.  Workers at franchised stores won't see the raise.
A McDonald’s restaurant in Mason City, Iowa. Workers at franchised stores won’t see the raise.

CHICAGO – McDonald’s USA today announced enhanced benefits for employees at its company-owned restaurants, including a wage increase and paid time-off for full and part-time crew employees. In addition, the company is expanding its Archways to Opportunities education offerings to provide eligible U.S. restaurant employees – at both company-owned and franchised restaurants – with free high school completion and college tuition assistance.

“We’ve been working on a comprehensive benefits package for our employees – the people who bring our brand to life for customers every day in our U.S. restaurants,” said McDonald’s President and CEO Steve Easterbrook. “We’ve listened to our employees and learned that – in addition to increased wages – paid personal leave and financial assistance for completing their education would make a real difference in their careers and lives.”

On July 1, 2015, starting wages at McDonald’s company-owned restaurants in the U.S. will be one dollar over the locally-mandated minimum wage. The wages of all employees up to restaurant manager will be adjusted accordingly based on tenure and job performance. By the end of 2016, McDonald’s projects that the average hourly wage rate for McDonald’s employees at company-owned restaurants will be in excess of $10.

Also on July 1, full- and part-time crew employees at company-owned restaurants, with at least one year of service, will begin to accrue personal paid time-off. For example, an employee who works an average of 20 hours per week will be eligible to accrue approximately 20 hours of paid time off per year. If these employees don’t take the time off they’ve earned, they will be paid for the value of that time.

These two benefit enhancements apply to McDonald’s company-owned restaurants, which represent more than 90,000 employees and about 10 percent of McDonald’s restaurants nationwide. The more than 3,100 McDonald’s franchisees operate their individual businesses and make their own decisions on pay and benefits for their employees.

“We are acting with a renewed sense of energy and purpose to turn our business around,” Easterbrook said. “We know that a motivated workforce leads to better customer service so we believe this initial step not only benefits our employees, it will improve the McDonald’s restaurant experience. We’ll continue to evaluate opportunities that will make a difference for our people.”

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