Bank of America announced this week that it raised the minimum hourly wage in the United States to $21 and plans to increase it to $25 by 2025. Last year, the bank raised the minimum hourly wage to $20, up from $17.
With the increase to $21 an hour, the annual minimum salary for full-time employees of Bank of America would be $43,680.
In May, the company announced that all of its US sellers are now required to pay Bank of America employees $15 or more per hour.
The current federal minimum wage for private sector workers is $7.25 an hour, enacted more than a decade ago. The Biden administration and Congressional Democrats are pushing for a $15 minimum wage, while many states and localities are raising their own mandatory minimum wage levels.
SHRM Online He has compiled the following articles on rising minimum wage rates for employers in the United States.
Walmart to increase wages and end quarterly bonuses
Walmart has increased hourly wages for hundreds of thousands of its employees as of the end of September. The retailer raised its initial wages to $12 from the $11 level established in 2018, a move that increases wages for more than 525,000 of the 1.6 million workers in the United States by at least $1 an hour. The company said Walmart workers would earn an average of $16.40 an hour.
Walmart also said it was gradually eliminating its quarterly bonuses for store workers, ending a decades-old practice of offering hourly workers financial incentives directly linked to store or company performance — a practice championed by Walmart founder Sam Walton. The company said that converting the bonus into wages will increase the workers’ fixed and expected income.
(The Wall Street Journal)
What does Amazon’s average hourly wage of $18 mean to other employers
The company said in September that Amazon is raising its average hourly wage in the US to $18 an hour for warehouse workers, adding pressure on other employers to do the same in a tight job market. Just four years ago, the online retailer raised its starting wages to $15 an hour.
A new wage standard from the second-largest private employer in the US – only tracking Amazon and Walmart in the size of its employee base – is putting pressure on competitors to raise wages. This is not only among national employers such as Walmart and Target but also locally. Ahead of the holiday season, wage inflation is a real challenge for small businesses struggling to find workers.
Big companies raise minimum wages
Many large companies that have been criticized for underpaying their employees are now increasing their offerings in the hope of attracting more workers. This means that hourly wage jobs are boosted to levels never seen before.
Costco, which introduced $15 per hour starting wage in 2019, now pays all employees a starting wage of $16 per hour. More than half of hourly workers are paid more than $25 an hour.
Chipotle reached a median hourly wage of $15 per hour for its employees by the end of June 2021, with hourly wages now ranging from $11 to $18.
The pharmacy chain CVS Health is pledging to raise the minimum wage to $15 an hour for all employees by July 2022. The company’s minimum wage was recently increased from $11 an hour to $13.
In August, Starbucks raised baristas’ pay starting at $12 an hour, with a pledge to increase the minimum wage for everyone to $15 an hour within three years.
Increased wages can boost inflation
As the economy recovers from the COVID-19 crisis, employers have struggled to find workers amid an ongoing labor shortage. To attract employees, many employers have raised their salaries.
But the salaries of low-wage workers continue to rise, likely contributing to inflation further, as companies hand customers the bill for rising overheads.
Some consumer services have admitted to raising their prices in response to wage pressures. For example, Chipotle raised its rates by about 3.5 percent to 4 percent in June after raising hourly wages for employees by about $2 to an average of $15.
Navigating the Minimum Wage Decision
Employers who raise the minimum wage often work to offset the increase in costs. For example, some companies reduce the amount of labor they need by investing in automation or having fewer people working on the sales floor during a shift.
However, employers should also consider how they can benefit from the increase in the minimum wage from a financial point of view. Take a turn. “Replacing an employee costs 1.5 to 2 times the salary, even if that employee earns minimum wage,” said Amy Mosher, chief human resources officer at HR technology company iSolved in Charlotte, North Carolina. It becomes too expensive.”
(All things work)
The federal minimum wage rate of $15 will apply to new federal contracts
The US Department of Labor issued a notice on September 16 explaining the new minimum wage rates for employees performing work under or under federal contracts. The rate will increase to $11.25 per hour for existing contracts on January 1, 2022. Beginning on January 30, 2022, the rate will be $15 for work performed on new, renewable, and extended contracts.
Many companies that regularly receive contracts from federal agencies, such as construction companies, are already paying more than $15 an hour. But an increase in the minimum wage is likely to affect employees who perform other services for agencies, such as cleaning and cooking in federal buildings or employee call centers in support of government initiatives.
(SHRM Online And