Costco, Target to Raise Minimum Wage to $15 Per Hour

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Costco, Target to Raise Minimum Wage to $15 Per Hour
Photo: Shutterstock

After Target announced it would raise its minimum wage to $15 per hour by 2020, Costco announced March 8 that it would also raise its hourly wage for the second time in less than a year, according to Fortune.com.

Costco, Target to Raise Minimum Wage to $15 Per Hour
Photo: Shutterstock

These changes at Costco went into effect March 4 after CRO Richard Galanti announced to investors that the company raised the U.S. and Canada minimum wages, according to Business Insider.

Costco raised its base wage from $13 to $14 in June 2018 and just raised it to $15, the report states. Employees and supervisors will see pay increases and reportedly see paid parental leave for hourly employees, according to Fortune.com. Over the last year, Target, Walmart and Amazon have raised their minimum wages. Amazon raised its minimum wage October 2018.

“We listened to our critics, thought hard about what we wanted to do, and decided we want to lead,” said CEO Jeff Bezos to Fortune. “We’re excited about this change and encourage our competitors and other large employers to join us.”

So far, 18 states began the new year with higher minimum wages. Eight states (Alaska, Florida, Minnesota, Montana, New Jersey, Ohio, South Dakota, and Vermont) automatically increased their rates based on the cost of living, while 10 states (Arizona, Arkansas, California, Colorado, Maine, Massachusetts, Missouri, New York, Rhode Island and Washington) increased their rates due to previously approved legislation or ballot initiatives, according to the National Conference of State Legislatures. The NCSL states that other states that will see rate increases during the 2019 calendar year include D.C., Delaware, Michigan, and Oregon.

In February New Jersey enacted AB 15, which will gradually increase the minimum wage rate to $15 per hour by 2024. The NSCL states that tipped employees will increase to $9.87 by 2024. The Illinois Legislature enacted SB 1 to gradually increase the minimum wage to $15 per hour by 2025, also adjusting the youth wage rate to $13 per hour by 2025. In 2018 Massachusettes increased its minimum wage to $15 per hour over a period of five years. The tipped wage will also increase, according to the NSCL.

The NSCL website also notes that:

Alabama, Louisiana, Mississippi, South Carolina and Tennessee currently have no planned or future state minimum wage increase legislation.

Missouri, Oklahoma, Texas, Puerto Rico, Utah, and Virginia exclude from coverage any employment that is subject to the Federal Fair Labor Standards Act.

Hawaii, Kansas, and Michigan exclude from coverage any employment that is subject to the Federal Fair Labor Standards Act, if the State wage is higher than the Federal wage.

The Georgia state minimum wage is $5.15. Employees covered under the federal Fair Labor Standards Act are subject to the federal minimum wage of $7.25, but those not covered under the FLSA may be paid the state minimum wage of $5.15, the website states.

The state with the lowest minimum wages are Wyoming and Georgia at $5.15 per hour. According to the U.S. Department of Labor, the federal minimum wage for covered nonexempt employees is $7.25 per hour, enacted in 2009. The federal minimum wage provisions are contained in the Fair Labor Standards Act, but many states have state minimum wage laws. In these cases where the employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages, according to the U.S. Department of Labor.

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