Starbucks brews up pay hikes, bonuses after tax cut

Starbucks is dishing out pay increases and stock bonuses to employees, becoming the latest major employer to boost compensation after Congress approved a tax cut that will benefit businesses.

The coffee shop chain said it would spend $120 million on wage hikes that will vary in magnitude throughout the country. The company said it already pays more than minimum wage in all of its markets.

The Seattle-based company will also give stock grants to everyone employed at the company’s stores, plants and support centers as of Jan. 1. Hourly retail workers will get at least $500 in shares while store managers will get $2,000. Altogether, Starbucks said it would spend more than $250 million on the increased wages and benefits.

The company credited “recent changes in the U.S. tax law,” saying they “accelerated” the decision.

Starbucks will also offer additional parental leave for six paid weeks to all non-birth parents. And it will create 8,000 new retail jobs.

The moves come amid a flurry of similar measures by other national companies. Walmart, the nation’s largest employer, recently announced a minimum wage boost to $11 per hour. JPMorgan Chase announced 10% average pay increases for workers on Monday, and The Walt Disney Co. announced $1,000 bonuses Monday.

The increases also come amid tighter competition for employees with the national unemployment rate at 4.1%.