In an attempt to beat Walmart on worker pay (but not go as far as Costco), Target is raising its lowest hourly wage from $10 to $11 starting next month, with plans to increase that base rate up to $15 per hour by 2020.
In a statement released this morning, Target calls the move a “significant investment in its team” that will allow Target to recruit — and keep — “strong team members,” as well as providing an “elevated experience” for shoppers and in surrounding communities.
This means thousands of workers will get a pay increase, including hourly employees the retailer is hiring now for the holiday season.
“It’s part of our overall commitment to investing in our team and making sure we’re attracting and retaining great talent,” Target chief executive CEO Brian Cornell told reporters this morning.
The federal minimum wage has been stuck at $7.25 an hour, though a majority of states — and some cities — have subsequently established minimum pay standards that exceed the federal base rate.
Seven states (Arizona, California, Connecticut, Massachusetts, Oregon, Vermont, Washington) have minimum wage levels of at least $10/hour, while a handful of cities — including San Francisco, Los Angeles, and Washington, D.C. — now have minimum wages that are already higher than Target’s $11/hour rate.