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For any McDonalds manager, their 401k plan is the most vital source of income for their retirement. However, recently the fast food corporation has come under fire for reportedly causing these 401k plans to drop in value due to bad investment decisions.
Many current McDonalds managers are trouble by this allegation because it could negatively affect their own retirement plan. This has led to a class action lawsuit investigation to see if McDonalds managers and other employees can take legal action against the company.
McDonalds Manager Benefits
Economic sources show that McDonalds positions like managers provide average salaries and decent benefits. According to the website Payscale.com, the average yearly salaries of McDonalds employees are as follows:
- Restaurant General Manager: $25,881-$56,304
- Restaurant Manager: $18,121-$47,023
- Fast Food Worker: $14,679-$19,106
- Cashier: $15,600-$20,668
According to the McDonalds website, the general duties of a manger include running shifts, processing payroll, updating time sheets, demonstrating protocol, tracking supply and shipment orders, and communicating with the company regional offices serve as additional job duties for assistant managers and store managers.
Along with their salaries, McDonalds also provides their managers with 401k retirement plans, life insurance, disability coverage, prescription drug plans, paid time off, holiday pay, medical insurance, and educational assistance. Additionally, McDonalds also offers flexible scheduling to parents or students, provides the uniforms, and offers free or discounted meals.
The company states that its top priority is to hire only best and brightest candidates for employment, and that its goal is to provide investment opportunities, rather than a base pay. Ideally, McDonalds managers would perform their duties and would be provided their compensation without hassle.
Overview of McDonalds 401k Plan Issues
Despite its reasonably good McDonalds manager benefits program, it has been recently alleged that McDonalds may have been undercutting its 401k plans by making bad investment choices. If found to be true, these actions would have diminished the value of McDonald’s 401k plan and decreased the amount of money in its employee retirement plans. Additionally, this also limits whatever future investment plans that the employee may have had for their 401k plan, or alters their retirement options at the very least.
Like all corporations in America, McDonalds is legally obligated to adhere to the Employee Retirement Income Security Act of 1974 (ERISA), which sets minimum standards for pension and health plans for employees.
Under ERISA, the overseers of employee benefits, like plan trustees, administrators and members of the plan’s investment committee, must act in the best interests of the plan’s participants. To do this, the fiduciaries must inform the participants about the 401 plan and provide them with a grievance and appeals process. This means that McDonalds has the responsibility to avoid conflicts of interest for the 401k plan participants, or their employees, and must maintain the level of value for their investments.
If McDonalds or any other company is found to be in violation of ERISA, then they could potentially be subject for legal action. Some McDonalds manager 401k participants could have been negatively affected by unsuitable investments in the 401k portfolio. Due to the fact that these investments were a conflict of interest, the 401k plans are not earning as much as they should.
Join a Free McDonalds 401k Class Action Lawsuit Investigation
A class action lawsuit investigation is currently underway to pursue the possibility of taking legal action against McDonalds for potentially violating ERISA. If you are a McDonalds employee who signed up for a McDonalds 401k account since 2007, you may have a legal claim.
