Costco is raising its minimum wage to $16 an hour next week, says that 'isn't altruism'


The Democrats' push, most prominently by Sen. Bernie Sanders (I-Vt.), to raise the federal minimum wage to $15 an hour hit a significant snag on Thursday. But Costco, the No. 2 U.S. bricks-and-mortar retailer, raised the ante anyway, announcing Thursday — at a Senate hearing chaired by Sanders — that it is raising its own minimum wage to $16 an hour, starting next week. Costco set its lowest hourly wage at $15 in 2019, a year after raising it to $14. The federal minimum wage has been $7.25 an hour since 2009.
"I want to note: this isn't altruism," Costco CEO Craig Jelinek said at the Senate Budget Committee hearing. "At Costco, we know that paying employees good wages and providing affordable benefits makes sense for our business and constitutes a significant competitive advantage for us." About 90 percent of Costco's 180,000 U.S. workers are hourly employees, and 20 percent of them earn its minimum wage. The average hourly wage is $24, and Jelinek said the company has been paying a $2 hourly hazard bonus since March. That will end next month but be converted to wage increases company-wide, he added.
Costco's raise could pressure its large competitors to follow suit, CNN says. Target and Best Buy raised their minimum wage to $15 last year, while Walmart's minimum wage is $11, rising soon to $13 an hour for about a quarter of its workforce. Amazon's minimum wage has been $15 an hour since 2018.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Why Irish traditional music is having a moment
In The Spotlight Frustrations with isolation and technology credited for reviving 'auld' trad tunes
-
Mrs Warren's Profession: 'tour-de-force' from Imelda Staunton and daughter Bessie Carter
The Week Recommends Mother-daughter duo bring new life to George Bernard Shaw's morality play
-
The origins of the Taiwan Strait crisis
In Depth For over 75 years, the Republic and People’s Republic of China have confronted each other across the Taiwan Strait, a highly contested sea passage separating the two nations
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect