Starbucks To Raise Wages For 150,000 Employees

SEATTLE, WA - Starbucks will increase wages and benefits for about 150,000 full-time, part-time, hourly and salaried employees, the Seattle-based company announced Wednesday. Starbucks did not disclose how much wages will increase, but the company will offer new benefits like "partner and family sick time" and a new stock grant.

Starbucks cited recent tax law changes as why it's able to provide the pay and benefits upgrade. The new benefits apply to workers at more than 8,200 company-owned stores but not the 5,700 licensed shops like those found inside supermarkets.

Starbucks will spend about $120 million on the wage increase, which will vary by location wage laws and living costs. Employees are getting the increase on top of usual annual pay increases.

The sick time benefit will allow Starbucks employees to take time off to care for family members. Starbucks employees will earn one hour of time for every 30 hours worked.

“Today, we are proud to announce additional investment in stock, wages and a new Partner and Family Sick Time benefit that will further enhance our industry-leading approach. Just as we have always felt strongly that our partners are key to our business success, we have also known offering a valuable, comprehensive benefits package helps us retain our valuable partners," CEO Kevin Johnson said in a press release.

Other benefits announced by Starbucks Wednesday include:

• The sick time benefit will allow Starbucks employees to take time off to care for family members. Starbucks employees will earn one hour of time for every 30 hours worked.
• Employees will get an addition $500 stock grant in 2018, and store managers will get $2000 in stock.

In recent years, Starbucks has offered benefits that stand out compared to other restaurant chains. The company pays for employees to get a degree from Arizona State University through its Starbucks College Achievement Plan.

Starbucks is the latest company to announce wage increases citing the tax bill. Two weeks ago, Walmart announced it would give bonuses to employees and expand its parental leave program (the same day, the company announced it would close 63 Sam's Club stores, eliminating about 11,000 jobs). Bellingham-based Peoples Bank will increase minimum wage to $15 per hour beginning Feb. 1. Companies like Wells Fargo, Southwest Airlines, and Comcast have also announced pay increases.

The Associated Press contributed reporting to this story

Photo by Neal McNamara/Patch