Starbucks is increasing wages and offering sick leave after Donald Trump's tax cut
The next time you make a coffee run to Starbucks, you can feel good knowing that you’re supporting a business that cares about its employees. The coffee chain just announced plans to increase wages, give employees stock grants, improve benefits, and create new jobs. The decision is a direct result of Donald Trump’s tax cut.
When the tax bill was passed in December of 2017, it lowered the corporate tax rate from 35% to 21%. Many critics of the tax bill felt that the move was the GOP’s way of showing that they care more about companies than people. But some businesses, like Starbucks, are using the tax cut to reward their workers.
Starbucks will give U.S. employees, both hourly and salaried, raises in April of 2018. The company is investing about $120 million in that initiative. It will also give workers employed as of January 1st, 2018 more than $100 million in stock grants. Full-time, part-time, hourly, and salaried employees will receive a grant of at least $500. And managers will receive a grant of $2,000.
But the changes don’t stop there. The coffee chain will also expand on its parental leave policy and implement a new policy about sick days. These changes will affect about 150,000 U.S. employees.
Starbucks already pays above minimum wage in all 50 states.
This new $250 million investment will give workers even more valuable benefits.
Starbucks isn’t the first company to increase wages and reward their employees as a direct result of Trump’s tax cut.
Apple, Walt Disney, AT&T, Walmart, American Airlines, and more have made similar decisions. We’re glad they’re sharing the wealth.