Pay Hike Policy Could Shut Down Burger King and Other Fast Food Franchises on Military Bases-Truth! But On Hold!
Summary of eRumor:
Are Burger King and other fast food outlets on military bases shutting down because of a mandatory minimum wage hike set by the U.S. Government?
The Truth:
The alert in the example below is real and came from the website DailyPaul.com.
According to an April 16, 2014, article by CNBC wage hikes may lead to the closing of hundreds of fast food establishments currently operating on military bases in early 2015.
The article cited two sources for the worker compensation increase, a new policy update to the “Service Contract Act’s health and welfare rate, which requires that most federal contract workers receive wages and benefits similar to those prevailing in the locality.” The other source came from an executive order signed by President Obama that will increase in the minimum wage to $10.10 an hour for federal contract workers starting in 2015.
The article said 40 Washington lawmakers “signed a letter last week calling on the Labor Department to exempt some military exchanges, which include on-base fast food establishments, from the new rules.” Rep. Joe Wilson (R-SC), chairman of the House Armed Services Subcommittee on Military Personnel, said in a statement, “Vital services offered on military installations should not be placed in limbo because of a unilateral decision implemented by the Administration.”
In an April 18, 2014, article by Military Times, the Department of Labor has granted a temporary hold on the pay increase. The article said, “Labor officials are ‘reevaluating’ wage determinations for fast food workers and expect to ‘reissue industry-specific fast food wage determinations in the near future,’ according to a departmental announcement sent to interested parties and contracting offices.”
POSTED 05/27/14