Target raises its hourly minimum wage

Target raises its hourly minimum wage

Target raises its hourly minimum wage

In 2015, Target wouldn't promise to do the same after Walmart raised its minimum wage to $9 an hour at the time. The company employs some 323,000 people year round and this year, is ramping up its holiday period hiring with 100,000 seasonal staff for the run up to Christmas, a 43% increase over last year.

Target announced plans to hike its minimum raise to $11 next month and will increase the minimum hourly wage to $15 by 2020. The company called the move a "significant investment" that will allow it to continue to recruit and retain strong team members and provide an elevated experience for customers, according to a company press release.

Target's wage increase has put the company into a wage war with Wal-Mart Stores Inc. Minneapolis this summer joined at least three dozen other cities that have voted to raise hourly pay to at least $15 an hour in the coming years. The minimum wage is $11 in Washington and MA.

The federal minimum wage is $7.25 per hour.

On Monday morning, Target Corp. announced it wasn't going to wait for the politicians to figure it out. Target's Minneapolis values also show in their willingness to work with them.

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But how many will follow in Target's $15-an-hour footsteps? Wal-Mart Stores Inc (NYSE:WMT) increased its minimum wage to $10 an hour previous year.

This is a tough year for the retailers.

Target's new wage of $11 an hour puts it higher than the minimum wage in 48 states.

"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. We've always offered market-competitive wages to our team members.

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