National News

McDonald's to pay managers overtime

McDonald's Holdings (Japan) said May 20 that it will provide overtime pay to around 2,000 outlet managers and area market developers who have not been paid for extra work hours. The new overtime system will start Aug. 1.

Companies do not have to pay overtime to managers, but a court said that McDonald's must pay its managers overtime because they are given no authority.

This move comes after a court ordered McDonald's to pay a former manager ¥7.5 million for 60 to 80 hours of unpaid overtime each month.

Experts say if outlet managers are paid all the overtime they are due, labor costs will rise and it will be an enormous blow to the fast-food industry. (Kyodo News)

Shukan ST: May 30, 2008

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