Published: Tue, September 26, 2017
Economy | By Melissa Porter

Target to raise minimum wage to $11/hour, $15 by 2020

Target to raise minimum wage to $11/hour, $15 by 2020

However, the company's promise to raise its minimum hourly wage to $15 by 2020 complies with new legislation in both NY and California, where the minimum wage will increase to $15 per hour in the coming years.

The Target Corp. announced Monday an hourly minimum wage hike to $11 beginning next month, followed by an increase to $15 by 2020.

Target noted that by moving to an $11 minimum hourly wage this fall, it will be providing pay increases to thousands of its workers across the country ahead of the the holiday season. The company announced in September that it plans to hire 100,000 people for the holidays.

Executives at the Minneapolis-based retailer declined to say how many of its 323,000 hourly employees at stores and distribution centers might get a raise.

The minimum wage increase is not expected to impact Target's third-quarter and full-year financial results.

"Target has always offered market competitive wages to our team members", Brian Cornell, CEO and chairman of Target, said in a release. The company is also spending $7 billion to remodel stores and open new locations, including on college campuses.

The new Target minimum wage is about 50% greater than the federal minimum hourly wage of $7.25 and matches the minimum wages in MA and Washington, the highest in the country. The Wall Street Journal reported in January that Walmart's average salary is $13.69 an hour.

Of course, one of the problems companies must consider when raising their minimum wage is how much the decision will affect their profits.

Target's new wage of $11 an hour puts it higher than the minimum wage in 48 states. Democratic leadership introduced a bill in July to take the $15 minimum wage national, but the legislation failed to attract the requisite support to advance.

Like this: