Why can’t McDonald’s employees accept tips in the United States?

Lucy NicholsonREUTERS In the United States, the federal minimum wage is $7.25 per hour. However, the minimum wage for tipped employees is $2.13 per hour. According to the Department of Labor, the amount of tips plus the $2.13 must add up to at least $7.25 per hour. Otherwise, the employer must pay to make up the difference.

In most cases, it is customary to tip waiters or service providers. However, there are certain restaurants or franchises, particularly fast food establishments like McDonald’s, where employees are not allowed to accept tips. The company enforces a policy that prohibits workers from receiving […]

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