Target raises minimum wage to $24 an hour

Target store workers and employees at distribution centers in places like New York, where the competition is high for hiring, could see an increase in their wages as high as $24 an hour. Target said on Monday that it will adopt minimum wages that range between $15 to $24 an hour. The highest pay would go to the hires in the most competitive markets. The company currently pays a universal starting wage of $15 an hour.

The new plan to increase starting wages is part of the company's plan to spend an additional $300 million on its labor force this year. This will also include broader and faster access to healthcare coverage for its hourly workers. Brian Cornell, Target's CEO said in an interview, "The market has changed. We want to continue to have an industry-leading position." 

Back in 2017, Target set a new marker for the retail industry when it announced it would raise hourly wages to $15 by 2020. But the US labor dynamics have not been the same since the pandemic, with countless employers facing labor shortages. Moreover, many of Target's rivals are already paying $15 or more to their workers an hour. 

Source: CBS News