McDonald's is in the spotlight lately: what is the hourly pay for employees?
In 2021, McDonald's boosted the starting range for shift managers to at least $15 - $20 an hour based on location
California fast food restaurants forced to close over minimum wage hike: 'Business owners are fed up'
CABIA President Tom Manzo joined 'Fox & Friends' to discuss how the minimum wage increase has impacted the fast food industry as thousands are forced out of work.
Like most fast food outlets, what McDonald's pays in wages depends on various factors, though some workers can make as much as $20 per hour.
Nationwide, Ziprecruiter reported that the average hourly pay for McDonald's Restaurant jobs nationwide is around $13.27 an hour. But, fast food restaurants have to abide by federal and their state minimum wage laws, so salaries will range depending on where the employee works as well as things like their job title and experience.
Also, the salary could depend on if someone is working at corporate-owned locations versus its franchisees. Over 95% of McDonald's restaurants are independently owned and operated by franchisees, who have the ability to set their own prices, according to the company. McDonald's does not set wages for its franchisees.
THE FAST FOOD MINIMUM WAGE EFFECT: HIGHER PRICES, REDUCED HOURS
In 2021, the company boosted wages specifically for McDonald’s-owned restaurants by an average of 10 percent. It shifted the entry level range for crew to at least $11 - $17 an hour, and the starting range for shift managers to at least $15 - $20 an hour based on restaurant location.
A McDonald's fast food restaurant is seen in Belmont, United States on April 03, 2023. (Tayfun Coskun/Anadolu Agency via Getty Images / Getty Images)
Assuming a 40-hour work week and 52 weeks per year, the $17 per hour translates to an annual salary of $35,360 per year. Comparatively, a $20 an hour salary would translate to just over $40,000.
The company also pledged that the average hourly wage for its company-owned restaurants would increase to $15 an hour in a phased, market-by-market approach by 2024.
CALIFORNIA FOOD CHAINS LAYING OFF WORKERS AHEAD OF NEW MINIMUM WAGE LAW
However, last year, McDonald’s reported that franchisees in the state of New York have already raised their wages beyond the current $15 minimum to attract and retain workers.
Customers are seen leaving the American multinational fast-food hamburger restaurant chain McDonald's. ( Sebastian Ng/SOPA Images/LightRocket via Getty Images / Getty Images)
Comparatively, legislation in California, that went into effect on April 1, bumped up the minimum wage for certain fast food restaurants from $16 to $20, which equates to an annual salary of $41,600.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MCD | MCDONALD'S CORP. | 292.44 | -1.80 | -0.61% |
AB 1228 was signed into law in September by Gov. Gavin Newsom, who said the state is getting "one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast-food workers a stronger voice and seat at the table."