McDonald’s wants to supersize its competitors’ wages.

In many states, restaurants are allowed to pay tipped employees a rate below the minimum wage. For instance, in Utah, a waitress can receive as little as $2.13 an hour from her employer. But the tips she earns can boost her pay well past the minimum wage. Nevada doesn’t allow this; all employees must be paid $12 an hour, the current minimum wage .

As wage floor laws have pushed entry-level pay higher, prices have risen in the fast-food industry. McDonald’s used to offer affordable food. In 1974, its signature Big Mac cost 85 cents in New York . In 2008, the burger cost $3.79 in the Big Apple. In 2024, McDonald’s said it cost $5.29 . In 2023, a viral photo showed a Big Mac combo at a rest stop costing $17.59 .

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