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Target raising minimum wage to $24 in some areas of the country

Target will be raising its starting wage to $24 an hour for some positions, based on the local market

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A hiring sign is in front of a Target store.

A hiring sign is in front of a Target store in Manchester, Conn., Nov. 39, 2021. Workers at Target stores and distribution centers in places like New York, where competition for finding and hiring staff is the fiercest, could see starting wages as high as $24 an hour this year. The Minneapolis-based discount retailer said Monday, Feb. 28, 2022 that it will adopt minimum wages that range from $15 to $24 an hour, with the highest pay going to hires in the most competitive markets. It currently pays a universal starting wage of $15 an hour.

Ted Shaffrey, Associated Press

Target employees at stores and distribution centers in places like New York may see their wages as high as $24 an hour.

The latest: The retailer said that the minimum wage will be in the range of $15 to $24 an hour.

  • The company also plans to spend an additional $300 million on its labor force this year, which includes better health care coverage for hourly employees.
  • According to the Wall Street Journal, store associates at the company who work at least 25 hours a week can now enroll in a Target medical plan, lowered from the minimum 30 hours a week. This allows 20% of the staff to be eligible.

What they’re saying: The highest pay will be available to those in competitive markets while the universal minimum wage remains $15 an hour, according to the Associated Press.

  • “The market has changed,” said Target CEO Brian Cornell. “We want to continue to have an industry-leading position.”

The bigger picture: Many retailers across the country adjusted for the cost of living in different markets. As of late, worker wages have risen due to a tight labor market.

  • Target started paying employees $15 an hour minimum wage in 2020.
  • Best Buy also raised the minimum wage to $15 an hour as well the same year, per the New York Times.
  • From $15 an hour, Costco raised it to $17 an hour.
  • Walmart’s hourly wages start at $12 an hour.