Target says it will raise its minimum wage from $10 to $11 an hour by October and boost it again to $15 hourly by 2020. The chain raised hourly wages to $10 in April 2016 after increasing to $9 a year earlier to match similar hikes by Walmart. The company announced in September that it plans to hire 100,000 people for the holidays.
Target said the moves are part of efforts to recruit and retain employees and provide better service to customers and communities.
"Target has always offered market competitive wages to our team members", said Brian Cornell, CEO and chairman of Target. The law mimics similar city- and state-wide ordinances across the country that phase in minimum wage increases up to $15 an hour, including in NY and California.
The move represents Target's third wage increase in three years.
"This is just one more step in being really definitive about the investments we're making in our team and the important role they play store by store in serving our guests. and we think we're moving in a very important direction as we get ready for the holiday season".
The federal minimum wage is $7.25 per hour.
The controversial House Bill 2, repealed last spring, explicitly forbade local governments from setting their own minimum wages. The urban minimum wage experiments, enacted in Seattle and San Francisco, have strained the local economies as small businesses, particularly restaurants, struggle to adapt. Chains such as Costco Wholesale Corp. also have boosted wages, while states like MA and Washington have established $11 an hour as the going rate for all workers. The Wall Street Journal reported in January that Walmart's average salary is $13.69 an hour. Executives at Wal-mart have stated that past wage increases cost the company as much as $2.7 billion, a figure that weighed heavily on the company's stock.