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McDonald's to increase wages, provide paid time off: April Fools?

McDonald's USA today announced wage increases and paid time off for full- and part-time employees at company-owned restaurants.

April 1, 2015

McDonald's USA today announced wage increases and paid time off for full- and part-time employees at company-owned restaurants. New benefits also include an expanded Archways to Opportunities program providing free high school completion and college tuition assistance for eligible U.S. restaurant employees at both company-owned and franchised restaurants.

"We've been working on a comprehensive benefits package for our employees - the people who bring our brand to life for customers every day in our U.S. restaurants," said McDonald's president and CEO Steve Easterbrook in a statement. "We've listened to our employees and learned that - in addition to increased wages -- paid personal leave and financial assistance for completing their education would make a real difference in their careers and lives."

Beginning July 1, 2015, starting wages at McDonald's company-owned restaurants in the U.S. will increase by one dollar over the locally-mandated minimum wage. The company will adjust the wages of all employees up to restaurant managers accordingly based on tenure and job performance. McDonald's projects that the average hourly wage rate for McDonald's employees at company-owned restaurants will be in excess of $10 by the end of 2016, according to a company press release.

Full- and part-time crew employees at company-owned restaurants with at least one year of employment can accrue personal paid time-off starting July 1, 2015. An employee who works an average of 20 hours per week can collect approximately 20 hours of paid time off per year, the company said. Employees have the option of being paid for the value of that time if they choose not to use it.

McDonald's company-owned restaurants represent more than 90,000 employees and about 10 percent of McDonald's restaurants nationwide. McDonald's franchisees, representing more than 3,100 locations, will make their own decisions on pay and benefits for their employees, the company said.

"We are acting with a renewed sense of energy and purpose to turn our business around," Easterbrook said. "We know that a motivated workforce leads to better customer service so we believe this initial step not only benefits our employees, it will improve the McDonald's restaurant experience. We'll continue to evaluate opportunities that will make a difference for our people."