Current:Home > ContactStarbucks to raise baristas' hourly wages starting in January-LoTradeCoin
Starbucks to raise baristas' hourly wages starting in January
lotradecoin promotions View Date:2024-12-25 12:38:54
Starbucks said it will boost wages for its hourly employees by at least 3%, with the increases going into effect January 1.
The Seattle-based coffee chain's wage hike comes amid its plan to double its employees' hourly incomes by the end of 2025, compared with 2020, through more hours and higher pay, according to a statement from Starbucks last week.
Starbucks is boosting pay after reporting record annual revenue of almost $36 billion, with same-store sales jumping 8% compared with the prior fiscal year. The company has invested more than $1 billion since last year on its employees and to improve its stores, which it said has helped retain workers.
Workers with longer tenures at Starbucks will be eligible for bigger raises, Starbucks said on Monday. People with two to five years of service could receive at least a 4% pay raise. Workers with five or more years could see a pay boost of 5%, the company said Monday.
Both union and non-union workers who have been working at the company since September should expect to receive higher wages next year, a Starbucks representative told CBS MoneyWatch. However, union workers' pay increases will ultimately be based on "historical and recent years raises" at their stores, she said.
"Coupled with higher wages and the expansion of hours, these investments have not only resulted in lower turnover ... but have also increased hourly total cash compensation by nearly 50% since fiscal year 2020," the company said in a statement.
Starbucks employees make an average wage of nearly $17.50 per hour, with baristas earning $15 to $24 an hour and total compensation of roughly $27 per hour including benefits, according to the company.
The coffee chain's decision to grant raises to both its union and non-union employees is a departure from the company's previous policy. In 2022, Starbucks hiked pay and benefits only for employees in its non-union stores. The move earned the company criticism from the National Labor Relations Board, which ruled that the move violated labor laws.
- In:
- Minimum Wage
- Starbucks
veryGood! (34)
Related
- This house from 'Home Alone' is for sale. No, not that one.
- JetBlue pilot says he took off quickly to avoid head-on crash with incoming plane: I hope you don't hit us
- NCAA says a redshirt eligibility rule still applies, fears free agency if it loses transfer suit
- Rarely seen killer whales spotted hunting sea lions off California coast
- Worst. Tariffs. Ever. (update)
- Central Indiana man gets 16 years for trying to provide guns to Islamic State group
- Victims allege sex abuse in Maryland youth detention facilities under new law allowing them to sue
- Can Congress fix Ticketmaster? New legislation, investigation take aim
- When does 'No Good Deed' come out? How to watch Ray Romano, Lisa Kudrow's new dark comedy
- Who is Easton Stick? What to know about the Chargers QB replacing injured Justin Herbert
Ranking
- Oregon lawmakers to hold special session on emergency wildfire funding
- Minnesota man reaches plea deal for his role in fatal carjacking in Minneapolis
- Minnesota man reaches plea deal for his role in fatal carjacking in Minneapolis
- Youngkin pledges to seek mental health legislation in honor of Irvo Otieno
- New Jersey, home to many oil and gas producers, eyes fees to fight climate change
- You can watch 'A Charlie Brown Christmas' for free this weekend. Here's how to stream it.
- Cobalt is in demand, so why did America's only cobalt mine close?
- NFL free agency: How top signees have fared on their new teams this season
Recommendation
-
A Malibu wildfire prompts evacuation orders and warnings for 20,000, including Dick Van Dyke, Cher
-
Arkansas board suspends corrections secretary, sues over state law removing ability to fire him
-
Ex-FBI counterintelligence official gets over 4 years in prison for aiding Russian oligarch
-
AP Week in Pictures: Latin America and Caribbean
-
Google forges ahead with its next generation of AI technology while fending off a breakup threat
-
Victims allege sex abuse in Maryland youth detention facilities under new law allowing them to sue
-
Julia Roberts talks about how Leave the World Behind blends elements of family with a disaster movie
-
'Thanks for the memories': E3 convention canceled after 25 years of gaming