Target extends $2-an-hour coronavirus pay bump through July 4

$2-an-hour boost for frontline workers comes as other retail companies' deals are set to end.

May 19, 2020 at 12:38AM
Target is extending a $2-an-hour pay bump and other benefits for store and distribution center workers. Shown is a store in Danvers, Mass. (AP Photo/Charles Krupa)
Target is extending a $2-an-hour pay bump and other benefits for store and distribution center workers. Shown is a store in Danvers, Mass. (The Minnesota Star Tribune)

Target will extend a $2-an-hour temporary pay bump through July 4, CEO Brian Cornell told employees Monday morning.

The announcement comes as some other companies' hazard pay for frontline workers — who have taken on extra risk and stress working during the pandemic — is set to expire at the end of this month or in early June as many states begin to reopen.

Essential retailers such as grocery stores as well as Amazon and Walmart started paying these wage increases or bonuses in mid-March as their sales surged with consumers stocking up on food and essentials amid stay-home orders.

This is the second time Target has extended the temporary pay increase in recent months. It will also continue through June 30 other pandemic-related benefits such as 30-day paid leave for high-risk employees who are 65 years or older, are pregnant or have underlying health conditions.

The first quarter, Cornell wrote in an e-mail to employees, was "intense, volatile and stressful."

"At the outset of the pandemic, we knew there was a long road ahead, that we would have to pace ourselves," he said. "These pay and benefits extensions are intended to help you and your family do just that as we all continue to support each other and move forward."

Target has spent hundreds of millions of dollars on pandemic-related pay increases and other benefits for its 350,000-plus workers in stores and distribution centers. The Minneapolis-based retailer will report its first-quarter results Wednesday.

Amazon's extra $2-an-hour bump for warehouse workers, as well as double pay for overtime, will lapse at the end of this month. Around the Twin Cities, Cub Foods' and Kowalski's pay increases are set for now to run through June 6.

Meanwhile, Walmart said last week that in June it will provide another round of bonuses — $300 for full-time and $150 for part-time workers.

A spokeswoman for Hy-Vee said that grocery chain, which has provided bonuses to employees during the pandemic, is discussing adding benefits.

Lunds & Byerlys, which gave bonuses to employees in April, has added a profit-sharing plan for workers based on hours worked from April 13 through September.

"This is being done to ensure our staff has another way to share in any positive financial performance we might realize this year," said Aaron Sorenson, a Lunds spokesman, in an e-mail.

Kavita Kumar • 612-673-4113

about the writer

about the writer

Kavita Kumar

Community Engagement Director

Kavita Kumar is the community engagement director for the Opinion section of the Star Tribune. She was previously a reporter on the business desk.

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