McDonald's Has a Serious Problem That Will Make You Mad

It has been a troubled labor market and some companies have resorted to unconventional methods to entice potential employees and retain the employees.

Across the country the current unemployment rates range from 1.9% in South Dakota to 5.5% in Nevada according to the US Bureau of Labor Statistics as of April. No matter where you live, finding a job should be relatively easy. 

Some firms in the healthcare industry is offering large sign-on bonuses for nursing and care staff. After the large sign-on bonuses, there are lots of extra incentives to get shifts covered. The starting wage of $15 a hour that was demanded almost five years ago is considered a bare minimum wage just to get people to interview. It’s a tough market to get and retain employees, let alone get good employees.

Many fast-food chains are offering a starting pay of $15 an hour, which as a starting wage for many teenagers. McDonald’s  (MCD) - Get Free Report is able to hire kids as young as 14 and 15 to work in a limited capacity and during specific times in the day.

McDonald’s Franchisees Break Labor Laws

A McDonald’s franchise in Louisville, Ky., had two 10-year-olds 'working' at the restaurant, who were reportedly unpaid. Bauer Food LLC is the owner of the location where the two 10-year-olds alleged to have been working. The 'workers' were children of a night manager. They were visiting their parent at work and were not approved by franchisee organization management to be in that part of the restaurant, according to NBC.

Since the incident, Bauer Food has made its stance clear on when and where visiting family can be at their restaurants. While the children were not employed by the restaurant, but likely just trying to help out, the reality is that they were working and at that age and in that capacity, it is still a serious violation. 

Restaurants owned by three different franchisees across Kentucky, Indiana, Maryland and Ohio were found to have violated the restrictions of child labor laws. The locations had hired over 300 children, legally, but had worked the youngsters outside of the restrictions put in place to protect children in the work force.

The children were working longer hours and performing work that is not permitted under child labor laws. The three franchises that were in violation of the labor laws were fined a combined $212,000. When considering a McDonald’s location might make roughly $150,000 of profit a year, that is a substantial penalty. The exact amounts that McDonald’s franchises make is not known, but according to Mashed, the sales of a McDonald’s location may be upward to $2.7 million a year.

McDonalds Must Follow Child Labor Laws

Like all employers who are able to hire young teenagers, the responsibility of following the law falls on the employer. The employee should also know their rights. When asked or told to do something that is restricted the child employee may not know they are being asked to do something illegal. The parents of the children working should also be knowledgeable about the laws involving children in the work force.

“We are seeing an increase in federal child labor violations, including allowing minors to operate equipment or handle types of work that endangers them or employs them for more hours or later in the day than federal law allows,” Wage and Hour Division District Director Karen Garnett-Civils in Louisville told FoodBeast. “An employer who hires young workers must know the rules. An employer, parent or young worker with questions can contact us for help understanding their obligations and rights under the law.” . 

Fourteen-year-old children are allowed to work in several capacities. They can work as a restaurant crew member, who can take orders, clean, or assist preparing meals. The law prohibits the child employee from working as a full cook with hot stoves or ovens. The laws around specific hours that children under the age of 16 can work vary by state. A general rule is that children are not permitted to work past the hours as late as 9pm on school nights. They can work later on non-school nights. In most states, a child cannot work more than 40 hours and, in many cases, only 8-hour shifts.