Target workers will soon get a boost in their paychecks. Bowing to pressure from living wage advocacy groups, the retail chain announced it will raise the minimum wage for all of its workers to $9 an hour. Target follows the same move made by its rivals including Wal-Mart and TJX Cos (which includes TJ Maxx) earlier this year. Though Wal-Mart went a little further. After upping salaries to the $9 minimum in April, they plan to bump that up to $10 next year, reports The New York Daily News.
And while Target has installed the $9 minimum wage, living wage adjustments will be made city by city. According to Chief Financial Officer John Mulligan, analysts said that paying $9 an hour in an expensive city such as New York City would not attract workers.
Target, which is looking to cut $2 billion in costs in a restructuring, currently pays employees more than the federal minimum wage of $7.25 an hour, and it has not indicated how many of its 347,000 employees would get an increase.
In other Target news, the company has agreed to pay a whopping $10 million to settle a class action lawsuit over the massive security breach that happened in 2013.
At least 40 million credit cards were compromised at Target during the 2013 holiday shopping season, and according to Target could have led to the theft of as many as 110 million shopper’s personal data.
While the settlement still must be approved by federal court, Target says it will deposit the settlement amount into an interest bearing escrow account, to pay individual victims up to $10,000 in damages.
Target shoppers will be able to submit a claim online through a dedicated website.
According to court documents, under the agreement Target must adopt and implement data security measures, including appointing a chief information security officer and maintaining a written information security program, reports Business Insider.
“We are pleased to see the process moving forward and look forward to its resolution,” said Target spokeswoman Molly Snyder.