Advertisement

businessRetail

Costco, Zales, Jared, Kay become latest to raise minimum wages

This year started with 20 states and 32 cities and counties increasing minimum wages while Congress has left the federal minimum, which Texas and some other states use, at $7.25 an hour.

While Congress considers raising the U.S. minimum wage, some retailers are pushing ahead by raising their own entry-level pay.

Costco and Signet, which owns jewelry chains including Zales, Kay, Jared and Piercing Pagoda, said Thursday that they would raise their minimum wages.

Costco, which operates 558 stores in the U.S, is lifting its starting pay to $16 an hour from $15 —putting it just above Amazon’s $15 minimum and well ahead of Walmart’s $11. Walmart in the fall increased minimum wages to $15 in its stores’ bakery and deli departments.

Advertisement

Costco CEO Craig Jelinek announced his company’s wage hike, which begins next week, while testifying at a U.S. Senate committee hearing Thursday. President Joe Biden has said he wants Congress to adopt a $15 minimum — a move that would raise pay for 3.5 million Texans.

D-FW Retail News

The latest on retail openings, closings and trends in D-FW.

Or with:

Signet is raising its minimum to $15 an hour and describes that as a continuation of bonus pay during the pandemic.

“We believe that raising our minimum wage is the right thing to do,” Signet CEO Gina Drosos said in a statement Thursday. “Our team showed incredible agility, creativity and compassion this past year — learning new capabilities that accelerated our transformation, exceeded customers’ expectations and delivered the best holiday season we’ve had in nine years.”

Advertisement

Drosos has led the company since 2017 with a culture that she says “puts our employees first.” The higher wage at Signet’s 2,900 stores will be rolled out over the next 12 months, the retailer said. The company, which has a large corporate operation in Irving, also set up a fund to help support employees.

Signet’s stores are mostly in malls — in both large and smaller markets — and the move will put pressure on other retailers to do the same.

Advertisement

Congress hasn’t changed the federal minimum wage since 2009, leaving it at $7.25 an hour. Texas has more minimum-wage workers than any other state, and it’s one of 21 states still using the $7.25 rate.

Other states — with costs of living that vary widely within their borders — are taking steps to help low-wage residents. Some opponents of raising the minimum focus on regions’ differing housing and other living expenses or argue that small businesses wouldn’t be able to afford the higher wages.

This year started with 20 states and 32 cities and counties increasing minimum wages, according to a report by the National Employment Law Project in New York.

Twitter: @MariaHalkias

Looking for more retail coverage? Click here to read all retail news and updates. Click here to subscribe to D-FW Retail and more newsletters from The Dallas Morning News.