Why is Tipping Not Allowed for McDonald’s Employees in the United States?

By: Dan Cooper

Published on:

Understanding the Minimum Wage for Tipped Employees in the US

It’s a well-known fact that the federal minimum wage in the US is $7.25 per hour. However, for tipped employees, such as waiters and service providers, the minimum wage is significantly lower – $2.13 per hour. But there’s a catch – the total amount of tips plus the $2.13 per hour must add up to at least $7.25 per hour, or the employer must make up the difference.

Why Some McDonald’s Employees Can’t Accept Tips

While most tipped employees in the US are entitled to a lower minimum wage, McDonald’s employees are not. This means that they should be paid at least the federal minimum wage of $7.25 per hour, regardless of tips received. However, the fast-food giant has a policy prohibiting its employees from accepting tips, even if they are offered voluntarily.

The company’s official website states that “tips are not accepted as McDonald’s restaurants have a team environment that is not about rewarding people.” Instead, if customers wish to donate, they can do so using the Ronald McDonald House (RMHC) donation boxes that can be found in some restaurants.

Proposed Law Could Change Things for Colorado McDonald’s Employees

However, things could change for McDonald’s employees in Colorado. The state legislature recently passed a bill that would prevent employers from taking adverse action against employees who accept cash tips offered by a business sponsor. This would mean that McDonald’s employees in Colorado could soon be free to accept tips without fear of reprisal.

The bill is currently awaiting the signature of Governor Jared Polis before it becomes law. If it passes, it could create a precedent for fast-food chains and other service providers across the US, potentially opening the door for tipped employees to earn a fair wage.

Leave a Comment