Bank Of America Increases Its Minimum Wage To $20 An Hour

CALIFORNIA — Bank of America today announced that it is accelerating the move from its current U.S. minimum hourly rate of pay of $17 to $20 by the end of the first quarter of 2020, more than a year earlier than originally planned.

The company said its decision is part of a "commitment to delivering sustainable, responsible growth by being a great place to work – through leading physical, financial and emotional benefits as well as innovative learning and development resources that support the needs of its 208,000+ employees."

“As part of our commitment to being a great place to work, we are saying thank you, and sharing our success with our teammates who serve our clients and communities every day,” said Sheri Bronstein, chief human resources officer at Bank of America.

Since 2010, Bank of America has increased its minimum wage by more than $8 per hour.

The federal minimum wage for covered nonexempt employees is $7.25 per hour. In California, employers with 25 employees or less are required to pay the basic minimum rate of $11 per hour; employers with more than 25 employees are required to pay $12 per hour.

From 2017 through 2023, the California minimum wage will increase annually to $15 an hour on a set schedule, and will be adjusted annually thereafter based upon a set formula and the number of employees.

Monday's announcement follows last week’s news that for the third consecutive year, Bank of America will extend special compensation awards to approximately 95 percent of its global workforce. Awards include cash bonuses and stock paid since 2017 totaling approximately $1.6B, in addition to any other compensation employees received, according to the company.