States across the country are raising their minimum wage and its forcing Walmart to change it's policies.
Reuters reports that an internal memo says that Walmart stores across the country will have to adjust base salaries at 1,434 stores, affecting one-third of their U.S. stores.
The change is timely as thirteen states have increased their minimum wage in 2014. The Economic Policy Institute has reported that 20 states and the District of Columbia will raise their minimum wage on January 1, 2015.
As of that date, 29 states will have minimum wages above the federal minimum wage, which still stands at $7.25 per hour, according to the National Conference of State Legislatures.
Popular VideoThis young teenage singer was shocked when Keith Urban invited her on stage at his concert. A few moments later, he made her wildest dreams come true.
Walmart is the biggest private employer in the U.S. with 1.3 million employees.
Walmart spokeswomen Brooke Buchanan says the change is to “ensure our stores in the 21 states comply with the law.”
The memo states that the policy change will be directed at its pay structure in order to narrow the gap between the different pay grades of their employee positions. They will also combine their three lowest pay grades into one base rate.
Walmart's CEO Doug McMillon talked to Charlie Rose about addressing the workers that still make the federal minimum wage.
Popular VideoThis young teenage singer was shocked when Keith Urban invited her on stage at his concert. A few moments later, he made her wildest dreams come true:
“Today we have less than 6,000 that make [only] the federal minimum wage,” McMillon said. “We’re going to make some changes in a few months that will create a situation where no Wal-Mart associate in the U.S. makes federal minimum wage. We couldn’t run a good business if we didn’t take care of people.”