Walmart Raises Hourly Wages, Hands out $1K Bonuses

Walmart, the world's largest private employer, is boosting its starting hourly wages for U.S. workers to $11 per hour. The company announced Thursday that it will also give a one-time cash bonus of up to $1,000 to eligible employees and is expanding its maternity and parental leave benefits.

The world's largest retailer said Thursday that more than a million hourly workers in the U.S. will be impacted by its compensation and benefits policy. The company employs 1.5 million people in the U.S.

The wage increase, which is up from $9 an hour, will go into effect in February.

The company is also creating a new benefit to help employees with adoption costs.

CEO Doug McMillon said that recently-enacted tax legislation "gives us the opportunity to be more competitive globally and to accelerate plans for the U.S."

McMillon said Walmart will give the one-time bonuses to hourly workers who already earn more than $11. The amount will be based on employees' length of service with the company, starting at $200 and going up to $1,000 for workers with tenures of 20 years or longer.

Walmart said the wage increases will cost $300 million, and the bonuses will cost $400 million.

"The new law will create some financial benefit for the company," Walmart said in its statement, saying it was "early in the process of assessing potential additional investments," and that it would provide additional details next month when it announces quarterly earnings.

Large employers have been under pressure to boost benefits for workers because unemployment rates are at historic lows, allowing job seekers to be pickier.

The nation's unemployment rate has sat at 4.1 percent for three months now, the lowest level since 2000. The average for hourly earnings rose 2.5 percent in December from a year earlier — about a full percentage point lower than is typical in a healthy economy.

The news of the boosted hourly wages at Walmart comes the same day the company quietly closed 63 Sam's Club stores across the country.

Some of the Sam's Clubs were shuttered Thursday without notice, with signs on gas pumps and store doors.

"After a thorough review of our existing portfolio, we've decided to close a series of clubs and better align our locations with our strategy," Sam's Club said in one statement. "Closing clubs is never easy and we're committed to working with impacted members and associates through this transition."

The company also told others concerned about the employees that it will "provide support and resources to those associates who are affected, including the bonus announced today and 60 days of pay, as well as severance to those eligible."

According to Business Insider, Sam's Club didn't say how many employees the closures will impact. However, each locations employs about 175 people, which means that 11,000 people could get pink slips.

For the full list of Sam's Clubs closings, click here.