McDonald’s and the Minimum Wage Increase in New York State: What you need to know

McDonald’s is one of the largest fast-food chains in the world, with over 38,000 locations in more than 100 countries. In New York State, McDonald’s is one of the largest employers, with over 30,000 employees, making it an important player in debates over minimum wage policies. New York State has been undergoing a series of minimum wage increases, and McDonald’s is implementing those changes at a faster rate than required by law.

The Current Minimum Wage in New York

The current minimum wage in New York State varies depending on where you work and the size of the employer. In areas outside of New York City, the minimum wage is $11.10 per hour for employers with fewer than 11 employees and $12.50 per hour for employers with 11 or more employees. In New York City, the minimum wage is $15.00 per hour for all employers.

McDonald’s and the Minimum Wage Increase

McDonald’s has committed to increasing the average hourly wage for its employees to $15 per hour by 2024. The company is doing this by gradually increasing wages each year. For example, in 2019, the company raised wages by an average of 6%, which is higher than the state’s minimum wage increase of 3%. This means that McDonald’s employees will see a higher wage increase than the one required by law.

It is important to note, however, that many McDonald’s employees in New York are currently making more than the minimum wage. According to Glassdoor, the average hourly wage for a crew member at McDonald’s in New York City is $13.44 per hour, which is already above the minimum wage in the city.

Benefits of the Minimum Wage Increase for McDonald’s Employees

There are several benefits to the minimum wage increase for McDonald’s employees, including increased job satisfaction and financial security. Employees who earn a higher wage are more likely to have a positive outlook on their job and are more likely to be loyal to the company. The increased financial security also allows employees to better support themselves and their families.

Another benefit is that it may help reduce employee turnover. High levels of employee turnover can be costly for companies, as it requires them to constantly train new employees. By paying employees a higher wage, companies like McDonald’s can reduce turnover rates and save money in the long run.

Challenges of the Minimum Wage Increase for McDonald’s

While there are benefits to the minimum wage increase for McDonald’s employees, there are also challenges that the company may face. One of the biggest challenges is the potential impact on the company’s bottom line. Paying employees a higher wage can increase labor costs, which can impact profitability.

In addition, McDonald’s franchisees may also be impacted by the minimum wage increase. McDonald’s franchises are independently owned and operated, and franchisees may not have the financial resources to increase wages at the same rate as corporate-owned stores. This could create an uneven playing field, where some employees are making more than others, depending on where they work.

Another challenge is the potential impact on pricing. If McDonald’s is paying higher wages, it may need to increase the prices of its products to maintain profitability. This could impact consumers, who may choose to go to other fast-food chains that offer lower prices.

Conclusion

The minimum wage increase in New York State will have a significant impact on McDonald’s and its employees. While the company is committed to increasing wages at a faster rate than required by law, there are still challenges that need to be addressed. As minimum wage policies continue to evolve, it is important for companies like McDonald’s to balance the needs of their employees with their financial goals.