Costco set to increase minimum wage to $16 nationwide

Costco Chief Executive Craig Jelinek said Thursday at a U.S. Senate Budget Committee hearing that Costco will increase its minimum wage to $16 next week for all of its 180,000 employees in the country.

Jelinek was speaking in a hearing on increasing worker pay at large companies as Democrats in Congress are attempting to pass a bill to increase the minimum wage to $15 nationwide. The federal minimum wage has not changed since 2009, when it was set at $7.25.

WA Rep. Jayapal: Bill raising federal minimum wage to $15 will bring US ‘up to standard Seattle set’

CNN reports that Costco, based in Issaquah, Washington, raised its minimum wage to $14 in 2018 and $15 in 2019. The company says that 20% of its hourly employees make the minimum wage.

Amazon raised its starting wage to $15 in 2018, while Target and Best Buy moved to $15 last year. Walmart, the largest retailer in the United States, has an $11 minimum wage.

Washington Rep. Pramila Jayapal expressed confidence earlier this week that the plan to raise the national minimum wage to $15 an hour will remain in the current COVID-19 relief package being considered in Congress. She also touted the relative success Seattle has seen with its $15 minimum wage.

“It is good for communities and it’s good for businesses,” Jayapal said. “I know because we were the first major city in Seattle to raise the minimum wage to 15 [dollars an hour]. In 2018 and 2019, Forbes ranked us the best place in the country for businesses and careers.”

The minimum wage increase being considered in Congress would phase in gradually, starting by raising minimum wage from $7.25 to $9.50 an hour in 2021, to $11 an hour in 2022, $12.50 in 2023, $14 an hour in 2024, and then finally $15 an hour in 2025.

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