Gap, Inc. Raises Minimum Hourly Wage to $10 by 2015
Posted on February 20, 2014Gap, Inc. announced that it is raising the minimum wage for its workers. It will increase the minimum hourly rate for our employees to $9 in 2014 and $10 in 2015. Gap, Inc. has around 65,000 store employees. Gap, Inc. owns the Gap, Banana Republic, Old Navy, Piperlime, Intermix and Athleta brands.
CEO and Chairman Glenn Murphy said in a statement, "To us, this is not a political issue. Our decision to invest in frontline employees will directly support our business, and is one that we expect to deliver a return many times over." Murphy explained, "The people in our company who engage directly with our customers carry an incredible responsibility. Our success is a result of their hard work, love of fashion and commitment. We hope this decision provides them with some additional support as they grow their careers with Gap Inc."
In his State of the Union address, President Obama asked Congress to raise the federal minimum wage from $7.25 to $10.10 an hour, although it is extremely unlikely that such a bill would pass the House. The President issued an Executive Order to raise the minimum wage to $10.10 for people working on new federal service contracts. Wal-Mart has said it is open to raising the minimum wage.