Starbucks raises wages for its baristas because the restaurant business prepares for a minimal wage hike

A worker stands in Starbucks in Midtown during the coronavirus pandemic in New York City on May 20, 2020.

Noam Galai | Getty Images

Starbucks increases hourly wages for its baristas as the restaurant industry prepares for a higher minimum wage when President-elect Joe Biden takes office.

Starting December 14th, baristas, shift supervisors and cafeteria attendants will receive a minimum 10% raise if hired before September 24th. This emerges from an internal memo from CNBC. Employees who have worked at a company-operated location receive an increase of at least 11%. Starting wages will be increased by 5% to help cafe managers find more staff.

The coffee chain is known for providing its employees with more generous benefits and wages compared to other retailers and national restaurant chains. It already pays off above the minimum wage.

Business Insider first covered the memo from Rossann Williams, the president of corporate-operated Starbucks locations in the US and Canada. Williams wrote the memo on November 2nd, the day before the presidential election.

In March, Starbucks was among companies offering disaster money to their workers as Covid-19 cases increased in the US. When the company reopened cafes in its home market, it began to let the advantage run out.

The raise comes when voters support a higher minimum wage. Federal wages have been $ 9.25 an hour for more than a decade, and the restaurant industry expects an increase during Biden’s tenure as president.

But states and cities are more proactive. Most recently, Florida voted to raise its wage floor over the next six years until it hits $ 15 an hour. It is the eighth state to approve a minimum wage of $ 15 an hour and the second largest state to do so.

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