Target said Wednesday that they will be raising their minimum wage to $15 an hour and give their hourly employees a one time bonus of $200.
What We Know:
- On July 5, the $2 pay raise will apply to employees at stores and distribution centers. In March, Target raised their wage by $2 temporarily as COVID-19 cases began to rise. The bonuses will recognize part-time and full-time employees that worked during the pandemic which will be paid out at the end of July.
- Target is one of many retailers that stayed open in order to sell essentials from toilet paper to groceries during the stay-at-home orders. As employees continued to come to work and took on new tasks, such as sanitizing and frequently restocking shelves, Target announced a temporary pay increase of $2 an hour to at least $15 in March, and it was extended through July 4.
- Target’s announcement is the culmination of several years of raising employee pay. Three years ago, the retailer announced a plan to increase its starting hourly pay from $10 to $15 over three years. It raised the minimum wage to $13 an hour last June and pledged to raise it to $15 an hour by the end of 2020.
- The company will also be offering extra benefits which include free backup care for employees’ children or needy adults through August, free mental health counseling, and 30-day paid leave for employees at higher risk of Covid-19.
- The minimum wage change will give a raise to about 275,000 of Target’s employees. Cities like New York and San Francisco already had a minimum wage of $15.
- With the higher wages, Target is spending nearly $1 billion more this year than it did last year on employee-related expenses, including many tied to the pandemic.
Beginning this week, all workers will also get access to free virtual health care visits until the end of the year, regardless of their insurance plans.