List grows of companies giving bonuses, raises
Corporations say tax cuts are prompting the actions and some Arizona workers receive bigger paychecks
Probably the biggest winners from the tax-reform legislation enacted in December were corporations, which will benefit from a reduction in their top income-tax rate to 21 percent from 35 percent starting this year.
And a growing number of large employers have responded by announcing bonuses or pay hikes for their staffs in Arizona and elsewhere, especially for lower-paid workers.
Many companies are citing tax reform as the catalyst, though a tightening labor market and rising profitability also are playing a role. Boosting wages is one of several uses companies can choose for the increased cash flow and profits that many will see from the new tax package.
Walmart, Disney and JPMorgan Chase all announced pay hikes or bonuses this week, following in the footsteps of companies including Washington Federal and Phoenix-based Western Alliance Bancorporation.
Western Alliance already has boosted pay for around 375 of its 700 Arizona employees. In some cases, the pay hikes represent one-time bonuses, while in other cases employees will see a permanent pay increase.
Disney this week unveiled plans to pay a one-time bonus of $1,000 to more than 125,000 employees, citing the tax cut.
On Wednesday, Walmart announced a one-time bonus for eligible full- and part-time hourly workers in the U.S. of up to $1,000, in addition to an increase in the retailer’s starting wage to $11 an hour, effective Feb. 17.
Walmart expects more than 21,000 associates in Arizona will be eligible for the bonus and more than 15,000 Arizona workers will benefit from the wage hike, which will increase the company’s pay average for full-time Arizona associates to $14.09 an hour.
Walmart is Arizona’s second-largest non-government employer with 34,300 statewide workers, behind only Banner Health, according to the Republic 100 report on largest non-government employers.
The company expects the hourly wage increase in Arizona will amount to $10 million this year, while the one-time bonus will total $8.2 million. Bonus amounts will be based on length of service; workers with at least 20 years will qualify for the full $1,000.
JPMorgan Chase this week announced a $20 billion, five-year investment in its employees, with the aim of supporting job and employment growth across the United States. The effort means roughly 1,060 employees in Arizona, including 800 or so in the Phoenix metro area, will see their wages rise to $15 an hour effective Feb. 25.
The move largely benefits tellers and customer-service representatives, said Chase spokeswoman Maura Cordova. “The lower-paid employees are going