mcdonalds fast-food minimum-wage franchise labor fight-for-15 lobbying
related: National Restaurant Association Starbucks
Who They Are
McDonald’s Corporation. The world’s largest fast-food chain by revenue ($25.5 billion, 2024) and the second-largest private employer in the world (200,000+ corporate employees, 2 million+ franchise workers). McDonald’s operates primarily as a real estate and franchising company — 95% of its restaurants are franchised, meaning McDonald’s collects rent and franchise fees while franchisees employ the workers and bear the labor costs.
McDonald’s political operation is primarily channeled through the National Restaurant Association (where McDonald’s has historically been the dominant member) and direct lobbying ($2-4 million annually). The company’s political priority above all others: opposing minimum wage increases that would raise labor costs across its franchise system.
What They Want
Opposition to federal minimum wage increases, favorable franchise regulation (avoiding joint-employer liability for franchisee labor violations), reduced NLRB enforcement, opposition to predictive scheduling laws, and continuation of the tipped minimum wage system ($2.13/hour) for applicable workers.
What They’ve Gotten
The Franchise Shield: McDonald’s most valuable political achievement is the maintenance of the franchise model’s legal fiction: McDonald’s sets menu prices, controls branding, mandates equipment and supply purchases, and dictates operational procedures — but claims it is not the “employer” of franchise workers. This legal distinction shields McDonald’s from liability for wage theft, labor violations, and unsafe working conditions at franchised locations. The Obama-era NLRB’s attempt to establish McDonald’s as a “joint employer” (2015) was reversed under the Trump NLRB, preserving the shield.
Minimum Wage Freeze: The federal minimum wage has been frozen at $7.25 since 2009 — the longest period without a federal increase in history. While state and local increases have raised effective minimums in many jurisdictions, the federal freeze benefits McDonald’s operations in the 20 states that still use the $7.25 floor. McDonald’s lobbying through the National Restaurant Association has been a primary force maintaining this freeze.
Money
McDonald’s franchise model is the most elegant labor extraction system in American fast food: the company controls every aspect of the restaurant operation (menu, pricing, suppliers, branding, procedures) while claiming it does not employ the workers who execute those operations. This legal fiction — maintained through lobbying that prevents joint-employer reclassification — shields McDonald’s from the labor costs, litigation, and regulatory compliance that its operational control would otherwise require. The $7.25 minimum wage freeze, maintained with McDonald’s lobbying through the National Restaurant Association, saves the franchise system billions annually in labor costs — costs borne by workers who earn poverty wages while McDonald’s generates $25+ billion in revenue.
Sources
- OpenSecrets: McDonald’s organizational profile (Tier 1)
- SEC: McDonald’s 10-K filing (Tier 1)
- Ballotpedia: McDonald’s (Tier 3)
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