Summary
Target is increasing its starting pay to $15 per hour starting July 5, 2020. Additionally, the company will provide $200 one-time bonuses to all frontline team members who provided essential services to guests throughout the pandemic. Starting this week, Target is also offering a new healthcare benefit that provides access to free virtual healthcare visits, regardless of whether team members are on a Target health insurance plan.
With these changes, Target will invest nearly $1 billion more this year in the well-being, health and safety of team members than it did in 2019. This includes increased wages, paid leaves, bonus payouts, personal protective equipment, and a donation to the Target Team Member Giving Fund.
Additional details of today’s announcement include:
- Starting Minimum Hourly Wage Increase to $15
- Target will permanently raise its hourly minimum wage from $13 an hour to $15 an hour starting July 5, which is more than 20% higher than the U.S. industry average.[1]
- All U.S.-based hourly full-time and part-time team members at stores, distribution centers and headquarters locations will be eligible for the $15 minimum starting wage.
- Frontline Team Member Recognition Bonus
- The company will give a one-time recognition bonus of $200 to its frontline store and distribution center hourly workers at the end of July for their efforts throughout the coronavirus pandemic.
- This is on top of bonuses of $250-$1,500 paid out in April to 20,000 hourly store team leads who oversee individual departments in Target stores.
- Free Access to Virtual Doctor Visits
- All U.S. team members will now have access to free virtual health care visits, regardless of whether they currently subscribe to a Target health care plan.
- The virtual visits will be offered through the end of the year so team members can conveniently and safely seek medical advice at a time of heightened focus on health and wellbeing.
- Continuation of Vulnerable Paid Leave and Backup Care Benefits
- Target will also extend additional COVID-19 benefits, including:
- A 30-day paid leave will continue to be available to team members who are 65 or older, pregnant or those with underlying medical conditions per the CDC.
- Free backup care will continue to be available to all U.S. team members through the end of August.
- Target will also extend additional COVID-19 benefits, including:
- Target will continue to waive its absenteeism policy, provide access to free mental health resources, and offer paid leave options for team members who are symptomatic, have a confirmed case of coronavirus, or have been quarantined due to exposure.
FAQs
Q: Why are you making this announcement now?
A: Our team is our most important asset, and they play the leading role in driving Target’s strategy. Team members have always been essential to Target’s success, and the current crisis has only amplified how their work serves communities and families every day.
Q: Who is eligible for the wage increase?
A: All U.S.-based hourly full-time and part-time team members at stores, distribution centers and headquarters locations will be eligible for the $15 minimum starting wage.
Q: When did Target last raise its starting wage?
A: In 2017, we made a commitment to raise our starting hourly wage to $15 an hour by the end of 2020. In 2017 we raised our wage to $11, in 2018 we raised it to $12, and last June we raised it to $13 an hour.
Q: How many team members are impacted by the minimum wage increase to $15?
A: The move to a $15 starting wage impacts approximately 275,000 of our team members at stores and distribution centers.
Q: Who is eligible for the recognition bonus and how much are they receiving?
A: A $200 bonus will be awarded to all eligible U.S. hourly frontline full-time and part-time team members in stores and distribution centers at the end of July.
Q: Can you provide more information on how backup care works?
A: Free backup care will continue to be available to all U.S. team members through the end of August. The benefit provides access to childcare or care for another family member and Target will continue to waive co-pays. By the end of August, team members will have been provided access to free backup care for their family members for more than five months. Care includes access to provider Bright Horizons’ center-based and in-home options for children or elder family members that live with team members.
Q: Will Target extend paid leave for vulnerable populations, including those who are 65 or older, pregnant or have underlying medical conditions?
A: We will continue to offer team members who are 65 or older, pregnant or those with underlying medical conditions per the CDC access to paid leave for up to 30 days. Eligible team members who have not yet used this leave option will continue to have access to this benefit for a one-time use.
Q: What are the other ways you are supporting team members in light of COVID-19 aside from wage?
A: As always, Target is committed to taking good care of our team members and their families, and we’ve extended additional benefits to help them during this time including:
- Quarantine pay—in the case of team members being placed under mandatory medical quarantine, we’ll provide them with 14 days of pay.
- Confirmed illness pay—if team members contract COVID-19, we’ll provide 100% of their pay for up to 14 days.
- We’ve also waived our absenteeism policy to support team members who may be unable to work because of school or daycare closures, or who stay home due to flu-like symptoms.
- Free backup care is available to all U.S. team members, and provides access to childcare or care for another family member.
- Our store and distribution center team members have the opportunity to shop for essentials one hour before stores open every Monday, Friday, and Saturday.
- Target is also offering a fully paid leave option for up to 30 days for all team members who are 65 or older, pregnant or considered among the most vulnerable by the CDC.
- We are keeping work environments safe by applying rigorous cleaning routines and regularly communicating updates on guidance from the CDC to our team so they can stay informed and safe.
- We are providing team members with high-quality, disposable face masks and gloves to wear at work and encouraging healthy hygiene habits as guided by the CDC.
- Target is offering all U.S.-based team members free access to additional online resources that support their mental, emotional and physical health. This wellbeing support includes:
- A full year of access to Daylight, a personalized web-based and mobile app designed to help individuals learn and practice proven strategies to navigate stress and worry.
- A full year of sleep support through Sleepio, a web-based and mobile app that provides self-help tools to improve sleep.
- Access to on-demand virtual fitness classes from the mobile app Wellbeats through the end of June.
- We have provided all team members with a health checklist—including a symptom checker and guidelines for taking their temperature—and encouraging them to complete it before coming to work. The resources being provided will be a guide to help team members check for symptoms of COVID-19, including fever, cough, and shortness of breath, as well as tips for staying healthy and advice on seeking healthcare. For any U.S.-based team member without a thermometer, we are providing them for free.
Please see below for related materials including a downloadable infographic summarizing the news (click to access infographic alt text).
[1] 2018 mean hourly wage for general merchandise store salespeople: $11.92 (Source: U.S. Bureau of Labor Statistics); updated May 2019 to $12.38 (Source: U.S. Bureau of Labor Statistics)