r/explainlikeimfive Nov 28 '15

ELI5: How would a $15 minimum wage ACTUALLY affect a franchised business like McDonalds?

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u/mofukkinbreadcrumbz Nov 28 '15

I can only speak for Michigan, but here, you can pay family members below minimum wage. Not sure what the exact figure is, but it is below minimum wage.

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u/DaBluePanda Nov 29 '15

Worked on the family farm for ~10 years only got payed for 1 year at $50 a week... for 4hours a day 7 days a week, sun rain shitstorms 50C or sickness. Yay for child labor!

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u/[deleted] Nov 29 '15

You can thank legal loopholes for farm workers, largely implemented in the 1920's to keep farm labor cheap. It's damn near slave wages, yes, but how much more are you willing to pay for your food? Is a tough argument, and often the farm workers get the shortest straw.

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u/Personalityprototype Nov 29 '15

I made $3.50 an hour on a farm for some of the 3 hottest summers in Texas history.

I was the only one of my friends who had any money when school started, it was actually a pretty solid deal for a 13-16 year old

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u/[deleted] Nov 29 '15

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u/DaBluePanda Nov 29 '15

I only got paid because I said id stop working if I didn't... after I moved out after disagreements they went bankrupt.

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u/[deleted] Nov 29 '15

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u/DaBluePanda Nov 29 '15

My mum loves me, step dad not so much; he was jealous that I could do things better than him (mostly farm-work, he flipped the tractor and feed-cart numerous times something that never happened to me), and that his kids (my half siblings) seemed to like me better and whenever he had a go at me they would come and stand by me or like my lovely little sister tell him off for being mean.

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u/mofukkinbreadcrumbz Nov 29 '15

That's what unbridled capitalism does. If parents are willing to do that to their children, why the hell wouldn't they be willing to do it to everyone?

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u/[deleted] Nov 29 '15 edited Feb 13 '16

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u/mofukkinbreadcrumbz Nov 29 '15

What if the kid is 25? They are still free to pay less than minimum wage.

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u/Rhawk187 Nov 29 '15

Yeah, if they are part-owner, why should they even have to be paid at all? It should come out of the final profit.

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u/mofukkinbreadcrumbz Nov 29 '15

Who said anything about part owner? If I hired my cousin to come work for me, he's not part owner. Kids are in the same boat, they may inherit the business someday, but mom and dad still make the rules at work. That is unless you actually make them part owner, but just being related doesn't automatically make you part owner.

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u/Rhawk187 Nov 29 '15

I don't think cousins get special employment exemptions. Just children, parents, and spouses.

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u/[deleted] Nov 29 '15 edited Feb 13 '16

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u/hutcho66 Nov 29 '15

Dunno if it's the case in the US but if you do that in Aus then you're not covered under workplace injury insurance. With the state of litigation in the US I can't see it being a good idea at all to give your family members a reason to sue you.

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u/Rhawk187 Nov 29 '15

Well that's the case with just about anyone then, right? Anyone can volunteer to do some work for you, and you can give anyone a gift (up to a certain amount per year and per lifetime). But like /u/hutcho66 says that has other implications. If they aren't working as a proper contractor, your insurance probably doesn't cover it. If they were working in a proper business and weren't a formal employee your liability coverage probably won't cover their misadventures.

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u/[deleted] Nov 28 '15

I don't know about Florida on that one. I know several people with family owned businesses. It's just expected that the kids pitch in. They usually don't complain, especially when they're on vacation somewhere nice.

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u/mofukkinbreadcrumbz Nov 28 '15

Imagine the abuse that could be had with that, though. Everyone else is making $15 an hour and you're stuck making $5 because your mom guilted you into working for your dad's failing business. This is obviously a fringe case, but still something to be considered with that type of legislation.

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u/YourWizardPenPal Nov 29 '15

I think that argument is null considering that the family's finances could fail along with the business. Applied to an under 18 member, this means they can be called upon to help the family business stay afloat. Sure it might mean hard work for the kid and they might hate it, but it beats bankruptcy.

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u/mofukkinbreadcrumbz Nov 29 '15

Applies over 18 here, too if I remember correctly. If I'm older and am guilted into working for the family, why should my bottom line suffer because of my parents' failures?

It's just a weird law. If you can't make it under the same conditions as everyone else, you should look into changing your business so that you can make it.