Amazon Treads Where Others Fear: $15 an Hour

In a couple of weeks, employees at Amazon — even seasonal workers — will see their wages jump to $15 an hour, up from $11 currently.

Amazon-raises-minimum-wage-to-$15-an-hourThe Nov. 1 move is sure to send ripples throughout the retail industry. Other retail giants, prior to Amazon’s decision, had already announced hourly hikes. Target raised its rate from $11 to $12 an hour with the goal of reaching $15 by 2020. In January, Walmart raised its minimum from $9 to $11 an hour.

The new Amazon minimum wage, which more than doubles the federally mandated rate of $7.25 an hour, comes at a price: Employees will no longer be given a stock purchase option and bonuses will be ended as well.

The $15-an-hour movement already has McDonald’s embroiled in a legal tussle over whether it is a joint employer responsible for the wage-and-hour and employment decisions of its franchisees. That lingering issue still has not been resolved and could send even more ripples through the corporate world.

According to a National Employment Law Project report, six states and 17 cities and counties currently have legislated minimum increases that will reach $12 to $15 an hour over the next few years.

NOTE: The details in this blog are provided for informational purposes only. All answers are general in nature and do not constitute legal advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The author specifically disclaims any and all liability arising directly or indirectly from the reliance on or use of this blog.
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