Starbucks Corp. plans to spend $250 million on new employee benefits, including a pay boost for domestic workers, in the wake of the federal tax overhaul.
The coffee chain will increase pay for its 150,000 U.S. hourly and salaried employees in April, following its regular annual raise earlier this month. It's also taking its paid-sick time benefit national, allowing workers to save up time off to use for themselves or family, Seattle-based Starbucks said on Wednesday.
Starbucks becomes the latest U.S. company to pledge a portion of its federal tax-cut windfall to employees, which the coffee giant calls "partners." Apple Inc. said earlier this month that it's giving most of its staff a $2,500 bonus. Wal-Mart Stores Inc., meanwhile, plans to hike its starting wage to $11 an hour and give out $400 million in one-time bonuses.
"Investing in our partners has long been our strategy," Starbucks Chief Executive Officer Kevin Johnson said in a memo to employees. "Due to the recent changes in U.S. tax law, we are able to accelerate some significant partner investments."
