Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business News

Walmart might end up supporting minimum wage hike

(Business News) Walmart has long been criticized for their pay structure and employment practices, but are they actually in support of Obama’s minimum wage increase proposal?



Walmart and minimum wage

An on-going discussion within the United States’ economy is the issue of minimum wage. Those in support of raising minimum wage made strides in 2014 when it was determined that an increase will be made in nearly half of the States in 2015. This forced the nation’s largest retailer, Walmart, to reevaluate how they are paying their employees.

During the new year, the lowest paid employees working in over 30 percent of Walmart’s stores are reportedly in for an increase in pay. After the first of the year almost half of the nation’s states and Washington D.C. are looking at a raise in minimum wage.

It was explained that Walmart informed their store managers that there will be wage adjustments within the store due to the raise in local pay. Reuters reported that there will be a shrink in the wage gap between Walmart’s lowest paid employees and their highest paid employees. The three lowest paying jobs in the Walmart corporation, maintenance, cart-pushers, and cashiers, will consolidate to the same pay rate.

Traditionally jobs are cut, will that happen again?

Unions and labor advocates have criticized Walmart over the years, claiming that the company underpays over one million of their employees. This is due to the fact that most of their employees are labeled as part-time while their full-time staff make $12.92/hour. Walmart has been found to cut many employee hours in order for said employees to be classified as part-time so they will only have to be paid minimum wage. In addition, the company recently eliminated insurance benefits of 30,000 part time workers.

Walmart CEO Doug McMillon stated that only some 6,000 employees make the federal minimum wage of $7.25. This statement has also been criticized because over the last few years, 18 states have already increased their minimum wages while most states will be over the $7.25 this year.

Advertisement. Scroll to continue reading.

In years past, Walmart has been seen to support increases in federal minimum wage and they will continue to do so with the new implementation of President Obama’s proposal of $10.10/hour. And because there will be a circle of spending (increases in federal minimum wage means an increase in consumer spending at Walmart stores) there is no mention of job cuts due to wage increases.


Staff Writer, Taylor Leddin is a publicist and freelance writer for a number of national outlets. She was featured on Thrive Global as a successful woman in journalism, and is the editor-in-chief of The Tidbit. Taylor resides in Chicago and has a Bachelor in Communication Studies from Illinois State University.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Business Finance

(FINANCE) Walmart is looking to hire a Cryptocurrency Lead and the job listing has some interesting language, leading us to wonder what they're up...

Business Marketing

(BUSINESS MARKETING) Walmart is paving the way for a new generation of corporate micro-influencers - but will being an influencer for these big brands...

Business News

(BUSINESS NEWS) Walmart pledges to spend $350 billion on domestic goods and products in the next decade.

Business News

(BUSINESS NEWS) Due to increased shipping costs, big companies like Amazon and Walmart are opting to give out a refund rather than accepting small...

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.