McDonald's workers won't see a benefit from the 'no tax on tips' portion of the 'Big Beautiful Bill'

"McDonald's workers won't benefit from the "no tax on tips" provision in the recently passed "Big Beautiful Bill.""

"However, the new law highlights an "uneven playing field" in the restaurant industry, according to McDonald's CEO Chris Kempczinski."

"He noted that with tipped wages, some restaurants are effectively shifting the responsibility of paying their workers onto the customers."

McDonald's workers will not receive benefits from the "no tax on tips" provision in the recently passed "Big Beautiful Bill". The law creates a distinction that excludes employees at establishments that do not rely on tipped wages. McDonald's CEO Chris Kempczinski characterized the resulting industry outcome as an "uneven playing field". He stated that tipped-wage models allow some restaurants to transfer the burden of payroll onto customers, effectively lowering employer labor costs and creating competitive disparities across restaurant business models.

Read at Business Insider