Sam’s Club sets $15 as its minimum wage

Sam’s Club is officially setting $15 an hour as its minimum wage, even though 95% of its warehouse club workers are already making that.

The division of Walmart said it also is raising department leader position pay from $18 to $19 an hour and increasing pay for tire and battery center technicians, personal shoppers who fill online orders and forklift drivers.

About a third (34%) of Sam’s Club hourly employees will see their pay rise on Sept. 25.

Starting pay for Sam’s Club now ranges from $15 to $20 an hour depending on the market and store location.

Last week, Walmart raised its minimum wage by $1 to $12 an hour and said starting wages range up to $17, depending on the location and department within its stores. That raise affects 565,000 Walmart hourly employees.

Walmart’s new U.S. average hourly wage is $16.40. The average in Texas was $15.61 before the pay hike. The higher wages are coming as Walmart plans to end quarterly bonuses after October. The quarterly “MyShare” bonuses have been in place since 2007.

Companies are rushing to raise wages in one of the most competitive labor markets in U.S. history with 10 million unfilled jobs and workers more confident to try out a new career or employer. Companies including Walmart, Target and Amazon are offering raises, bonuses and free college tuition as the pandemic put a spotlight on and created a stronger appreciation for frontline workers and their roles in the economy.

“We’re working to create an environment where you feel challenged and fulfilled in any number of interesting roles. We want you to stay with us, grow with us, and enjoy the advantages of being a Sam’s Club associate,” said Kath McLay, Sam’s Club CEO in a memo to employees.

Sam’s Club average hourly rate will be more than $17, McLay said, and it will be possible for an hourly Sam’s employee to earn up to $34 an hour developing on the location and role.

Sam’s Club results have improved during the pandemic and member count reached an all-time high this summer. Comparable sales increased 7.7% in the three months ended July 30 versus a year ago and e-commerce sales increased 27%.