Target To Boost Min Wage To $11 Per Hour, $15 By 2020

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Big-box retailer Target will raise its minimum wage to $11 per hour in October and eventually to $15 per hour by 2020, the company announced on Sept. 25. The company has yet to say how many workers will be affected by the wage hike, nor how the increases will be rolled out over the next four years.

The wage spike marks Target's third company-wide pay raise in three years, Fortune reports.

According to CNBC, Target has been in a bit of a wage war with rival superstore Walmart since February 2015, when Walmart announced that it would be raising workers' wages to $10 per hour by 2016. Target responded by raising its minimum wage to $9 per hour in April 2015. One year later, Target increased its base pay to $10.

"Target has always offered market-competitive wages to our team members," said CEO Brian Cornell in a statement. "With this latest commitment, we'll be providing even more meaningful pay, as well as the tools, training, and support ... that set Target apart."

In addition to current employees, the new wage is expected to affect nearly 100,000 temporary employees whom Target will hire as holiday help.

Target currently employs 323,000 workers. Though the company did not give exact numbers on the amount of the workers the new wages will impact, chances are that most of its minimum wage workers will be affected.

The U.S. federal minimum wage stands at $7.25 an hour. According to AL.com, Washington and Massachusetts are the only states that have an $11-per-hour minimum wage.

The promise to raise the minimum hourly rate to $15 by 2020 stands in line with the "Fight for $15" movement that has been gaining ground with Washington Democrats.

According to The Hill, Democrats introduced a $15 minimum wage bill in May 2017. The bill, backed by independent Sen. Bernie Sanders, promises to raise the federal minimum wage to $15 per hour by 2024.

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During her campaign, Democratic presidential nominee Hillary Clinton said that she would sign a $15 federal wage bill if one came to her desk, The Hill reports.

President Trump has not advocated for a $15 wage, though CNBC reports that he once spoke of raising the minimum wage on the campaign trail.

"The minimum wage has to go up," President Trump said to a crowd in Florida in 2016. "At least $10, but it has to go up."

Despite increasing expenditures on wages, Target has not changed its fiscal projections for 2017. Fortune reports that this indicates the wage increase had been planned ahead of time.

Sources: CNBC, Fortune, AL.com, The Hill / Featured Images: Kelly Martin/Wikimedia Commons / Embedded Images: Kristiantiholov/Wikimedia Commons, Mike Mozart/Flickr

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