CVS just announced it will pay its hourly workers an additional $2 an hour, give parental leave – and it won’t increase health care premiums
Now this is a prescription for job satisfaction.
CVS is raising the starting pay of its hourly workers from $9 to $11 beginning in April, and the pharmacy chain’s full-time employees will now qualify for up to four weeks of paid parental, the company announced on Thursday. CVS credited Congress’ tax overhaul, which cut the corporate tax rate for big businesses down to 21% from 35%, for providing the means to boost employee benefits.
“As part of our ongoing commitment to the patients, customers and communities we serve, we said that we would invest our tax savings back into our business, and that’s exactly what we’re doing,” said Larry Merlo, CVS Health president and CEO, in a statement. “Today, we’re building on the investments we’ve been making in our employees, in their wages, benefits and career development. It’s our employees who drive our performance and we appreciate how hard they work every day to deliver on our purpose of helping people on their path to better health.”
The employee investments will add up to about $425 million a year, including the pay raises and improved benefits, and CVS also expects to invest $275 million of the tax windfall data analytics, care management solutions and pilot programs. And workers enrolled in the company plan won’t have to pay higher health care premiums.
CVS workers aren’t the only ones benefiting from the recent controversial tax overhaul.
Home Depot’s hourly employees are also receiving some take-home improvement, in the form of one-time bonuses of up to $1,000. CNBC reported that the bonuses would be doled out based on the length of employment, with those working less than two years at the company getting $200; those working two to four years getting $250; five to nine years getting $300; 10 to 14 years getting $400; 15 to 19 years getting $750; and those working 20 years or more getting a grand. Home Depot has not confirmed these bonus amounts.
Things are also perking up for Starbucks baristas. The more than 150,000 hourly wage workers (a.k.a. “partners”) who clock in 20 hours a week or more are getting more than $250 million in new employee benefits, including a pay increase, stock grants and paid sick leave, the Seattle coffee chain announced last month. The compensation package has been “accelerated” thanks to the GOP tax overhaul, the company revealed in a press release, which is encouraging them to reinvest in the U.S.
The new benefits will include a pay increase for Starbucks employees in April, on top of the annual wage increase that already rolled out in January. A Starbucks representative told Moneyish he didn’t have the breakdown of exactly how much more workers would be getting, but that $120 million in wage increases would be doled out and vary by location, depending on an area’s cost of living and laws that vary from state to state. That includes more than 13,000 coffee shops across the country.
Partners will also receive stock grants starting at $500 on April 16, and managers will get grants beginning at $2,000.
Better yet, workers will finally be able to accrue paid sick leave depending on how many hours they work a week. They’ll earn one hour of sick time pay for every 30 hours they work, so someone punching in 23 hours a week will receive about five sick days over one year.
That’s less than the standard eight sick days that Americans working for private companies get on average. But it’s a huge bonus considering 70% of part-time workers and 61% of low-wage workers don’t have access to paid sick leave, according to the Bureau of Labor Statistics.
A Starbucks spokesperson told Moneyish that its Sick Time benefit is something that employees have been asking for. “In states where it was required, we offered it, but knew it was important to establish a national benefit, and in Starbucks tradition, made sure that this new benefit is above and beyond any current requirement by states.”
Walmart, the nation’s largest private employer, announced last month that it’s raising the starting wage to $11 an hour and handing out $400 million in one-time bonuses of up to $1,000 to its more than 1 million U.S. workers. Full-time hourly associates will also receive an expanded 10 weeks of paid maternity leave and six weeks of paid parental leave.
And Apple also announced earlier in January that “most” of its 120,000 employees worldwide will get a $2,500 stock bonus later this year, and the tech giant plans to spend $30 billion in the U.S. over the next five years by hiring 20,000 new workers and building a new Apple campus in a to-be-determined location.
This article was originally published on Jan. 24, 2018, and has been updated to include CVS.
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