McDonald's Chief Executive Chris Kempczinski said the company believes all restaurant workers should be paid the federal minimum wage, arguing that the current system that allows tipped workers to be paid far less creates an "uneven playing field." Kempczinski made the remarks in an interview with CNBC this week, linking the stance to broader conversations about wage policy.
Kempczinski noted that in many states sit‑down restaurant servers can be paid as little as $2.13 an hour under the federal tipped minimum, a figure set in 1991, with tips expected to make up the remainder of their earnings. "Right now, there's an uneven playing field, you're essentially getting your customer to pay for your labor, right?" he said. He added, "And you're getting an extra benefit from no taxes on tips, everybody should be paying the same wages - tipped and non‑tipped." He also said McDonald's is open to conversations about raising the federal minimum wage, which is currently $7.25 per hour.
Kempczinski said the company is in "constant dialogue" with the Trump administration about a range of issues, including the federal minimum wage. The comments come amid a wider policy debate over how to structure pay for tipped workers and whether federal standards should be changed to eliminate a lower tipped subminimum wage.
The debate over tipped wages has drawn attention from policymakers, industry groups and labor advocates, with proponents of change arguing that reliance on tips can leave workers vulnerable to fluctuating incomes and discrimination. Opponents have warned that eliminating the tipped subminimum could lead to higher menu prices or reduced staffing in some dining sectors.
President Trump has previously discussed policies related to tipping and taxes on the campaign trail, including proposals that would affect how tips are treated for federal tax purposes. Kempczinski's remarks underscore how a major national employer is weighing in on a policy area that intersects with congressional debates and potential regulatory action.
McDonald's position could add pressure to conversations in Washington about federal wage policy. While the company operates primarily in the quick‑service sector, where tipping is less common, its executives framed the issue as one of fairness across different restaurant business models.
Any federal change to the tipped minimum would require congressional action or a change in Department of Labor regulations, and would likely be met with competing industry and advocacy group responses. Lawmakers and stakeholders are expected to continue debating the economic and practical effects of altering the federal standard for tipped workers as the conversation about wage policy proceeds.