Starbucks gives workers raises, stock grants due to tax law

<p>Starbucks is giving its U.S. workers pay raises and stock grants this year, citing recent changes to the tax law.</p>

News 12 Staff

Jan 24, 2018, 12:59 PM

Updated 2,277 days ago

Share:

Starbucks gives workers raises, stock grants due to tax law
By JOSEPH PISANI
AP Retail Writer
NEW YORK (AP) -- Starbucks is giving its U.S. workers pay raises and stock grants this year, citing recent changes to the tax law.
All employees will soon be able to earn paid sick time off, and the company's parental leave benefits will include all non-birth parents. Starbucks Corp. said Wednesday that the changes affect about 150,000 full-time, part-time, hourly and salaried employees, most of whom work as baristas or shop managers. The new benefits apply to workers at more than 8,200 company-owned stores but not at the 5,700 licensed shops like those found inside supermarkets.
Starbucks is the latest to say it's boosting pay or benefits due to the passage of the Republican tax plan, which slashed the corporate tax rate from 35 percent to 21 percent. Walmart, for example, raised its starting hourly salary from $9 to $11 earlier this month, and also expanded its parental leave benefits.
Beyond changes to the tax law, other factors are affecting retail working conditions. Larger employers are having a hard time attracting and keeping workers because of historically low unemployment rates. Job seekers can be pickier about where they work, and companies are trying to make themselves more attractive. Target had also announced in October that it would raise its starting hourly wage to $11, and said it would raise wages to $15 by the end of 2020.
Starbucks said workers will get a pay raise in April, their second increase this year. The company declined to specify how much more workers will be paid or what it pays them now. The job and recruiting site Glassdoor says baristas make about $9.60 an hour, based on an average of salaries shared by Starbucks employees.
The company will give at least $500 worth of Starbucks stock in April to employees at stores, support centers or bean roasting plants. Store managers will get $2,000 in stock grants. Those amounts are on top of what those workers were already going to receive this year, the Seattle-based company said.
All workers will also be able to earn paid sick time off based on the hours they worked starting in July. Previously, only those who worked in states that had sick leave laws were paid for time off due to illness.
Starbucks said the changes will cost the company more than $250 million.
Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


More from News 12
1:42
Police: Marlboro teacher accused of inappropriately touching student faces charges

Police: Marlboro teacher accused of inappropriately touching student faces charges

2:19
Scattered rain showers overnight; sunshine returns Saturday afternoon

Scattered rain showers overnight; sunshine returns Saturday afternoon

0:32
Man who lit himself on fire outside Trump trial has ties to New Jersey

Man who lit himself on fire outside Trump trial has ties to New Jersey

0:56
Graffiti of former Palestinian militant Leila Khaled found spray-painted at Rutgers University

Graffiti of former Palestinian militant Leila Khaled found spray-painted at Rutgers University

0:09
Police: 2 men critically injured in Newark shooting

Police: 2 men critically injured in Newark shooting

2:16
Public warned to keep their dogs away from seals at the Jersey Shore

Public warned to keep their dogs away from seals at the Jersey Shore

0:59
Jersey Proud: 3 men running the length of New Jersey for ‘Dylan’s Wings of Change’ charity

Jersey Proud: 3 men running the length of New Jersey for ‘Dylan’s Wings of Change’ charity

0:35
Tesla recalling nearly 4,000 Cybertrucks because accelerator pedal can get stuck

Tesla recalling nearly 4,000 Cybertrucks because accelerator pedal can get stuck

1:01
New Jersey water companies make plans to adapt federal ‘forever chemical’ guidelines

New Jersey water companies make plans to adapt federal ‘forever chemical’ guidelines

1:54
Authorities: 2 children at Port Reading school become sickened after ingesting marijuana gummies

Authorities: 2 children at Port Reading school become sickened after ingesting marijuana gummies

2:45
Business owners say they are losing business due to Route 71 bridge being stuck in up position

Business owners say they are losing business due to Route 71 bridge being stuck in up position

1:42
Prosecutor: Remains found at Wall construction site were of ‘advanced age’

Prosecutor: Remains found at Wall construction site were of ‘advanced age’

0:27
Prosecutors: Atlantic City’s Central Pier bursts into flames; 1 man dead

Prosecutors: Atlantic City’s Central Pier bursts into flames; 1 man dead

0:25
Boil water advisory issued for parts of Monmouth County

Boil water advisory issued for parts of Monmouth County

0:48
Ridgewood mayor shares photos showcasing renovation of former Warner Theater

Ridgewood mayor shares photos showcasing renovation of former Warner Theater

1:37
Officials: Some Marlboro schools, Trenton Board of Ed receive bomb threat 2nd day in a row

Officials: Some Marlboro schools, Trenton Board of Ed receive bomb threat 2nd day in a row

0:31
Start of Sen. Bob Menendez's bribery trial is delayed a week to mid-May

Start of Sen. Bob Menendez's bribery trial is delayed a week to mid-May

0:35
How to get rid of unused or expired medications

How to get rid of unused or expired medications

2:51
EPA: Elevated levels of lead found at multiple East Trenton homes, parks

EPA: Elevated levels of lead found at multiple East Trenton homes, parks

Show off your team spirit! Share your photos with News 12

Show off your team spirit! Share your photos with News 12