MINNEAPOLIS (WCCO) — Target announced Wednesday that it’s boosting its starting minimum wage to $15 an hour for team members.
The Minneapolis-based retailer says the wage increase will take effect on July 5. Additionally, the company says it’s giving front-line team members and distribution center workers a one-time $200 bonus to recognize their efforts throughout the COVID-19 pandemic.
Target’s minimum wage spike comes as it sunsets the temporary $2 wage increase that was part of the company’s initial response to the COVID-19 outbreak, as team members were considered essential workers amid shutdowns and at risk of getting the novel coronavirus. The $2 wage increase was extended twice since March.
Target also announced Wednesday that its offering team members access to free health care through virtual doctor visits, whether or not the individual is on a company care plan. Moreover, Target is extending its 30-day leave policy for team members susceptible to COVID-19 and its paid leave options for workers who are symptomatic.
In 2017, Target had pledged to hit the $15 an hour minimum wage by the end of 2020. Back then, starting pay was $11 an hour. The last minimum wage increase came last year, when starting pay was bumped to $13 an hour.
Since the COVID-19 outbreak began in the U.S., Target has seen its online sales soar, as well as sales for essential products and groceries. Meanwhile, sales in other areas, such as its clothing brands, have dropped.