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McDonald's Exits Restaurant Lobby Group, Calls for One Minimum Wage in Tipping Fight

The chain argues tip tax breaks plus subminimum pay create an uneven playing field for non‑tipping competitors.

Overview

  • McDonald's left the National Restaurant Association over disputes tied to the tipped‑wage model, according to analyst reports cited by Bloomberg and Yahoo Finance.
  • CEO Chris Kempczinski says restaurants that rely on tips shift labor costs to customers and gain an extra edge from the new no‑tax‑on‑tips policy, which does not apply at McDonald's.
  • Kempczinski urged a single minimum wage for tipped and non‑tipped workers and said the company is open to talks on raising the federal minimum wage.
  • President Donald Trump’s Big Beautiful Bill created a tip‑related federal tax deduction of up to $25,000, though research shows many tipped workers owe no federal income tax and may see limited benefit.
  • The NRA has backed policies favorable to tip‑reliant restaurants, and McDonald’s break is seen as a setback for the trade group as debates over wages and tipping intensify.