Target will pay a $24-an-hour minimum wage in tightest labor markets

The Workers at Target stores and distribution centers in places like New York, where competition for finding and hiring staff is the fiercest, could see starting wages as high as $24 an hour this year.

The Minneapolis-based discount retailer helmed by CEO Brian Cornell said Monday that it will adopt minimum wages that range from $15 to $24 an hour, with the highest pay going to hires in the most competitive markets. It currently pays a universal starting wage of $15 an hour.

The new starting wage range is part of a company plan to spend an additional $300 million on its labor force this year that will also include broader, faster access to health care coverage for its hourly workers. “The market has changed,” said Cornell in an interview with The Associated Press. ”We want to continue to have an industry-leading position.”

Target set a new marker for the retail industry back in 2017 when it announced it would increase hourly wages to $15 by 2020. But US labor-market dynamics have changed during the pandemic, with many employers facing severe worker shortages. And many of Target’s rivals are now paying a minimum of $15 per hour or more.