Starbucks said on Wednesday that it will give all 150,000 of its workers a raise and added benefits this year in a $250 million plan that was “accelerated” by lower corporate taxes approved with recent tax reform legislation.
The company said it would give all U.S. hourly and salaried workers a second wage increase in April, in addition to increases they’ve already received this year, for a total of $120 million. The pay would be based on regional cost of living and laws that vary from state to state.
The company also said it would give its workers stock grants, with all retail employees receiving a $500 grant and managers receiving $2,000 grants. Support center and other nonretail workers would receive grants based on salary level.
The stock is valued at $100 million.
Starbucks also said it would give new sick leave benefits to its workers based on the hours they’ve worked. An employee gets one hour for every 30 hours worked, so someone who works 23 hours a week would accrue five days of sick leave over the course of the year.
“Just as we always felt strongly that our partners are key to our business success, we have also known offering a valuable, comprehensive benefits package helps us retain our valuable partners,” CEO Kevin Johnson said in a statement.
The new benefits come amid a tight labor market that is driving up wages in many markets, given the low unemployment rate of 4.1%.
But they also come as numerous companies have been using expected tax rate savings from last month’s passage of tax reform on their employees. Companies like AT&T, Comcast and Wells Fargo have pledged bonuses and other benefits to their employees.
Retail giant Walmart recently said it would raise wages and give out bonuses as a result of tax reform.
Darden Restaurants recently said it would invest $20 million of its tax savings into its workforce, likely as a bid to retain workers.
Starbucks argues that the benefits package it is giving to employees ranks above other retailers. “The value of Starbucks' benefit package is unmatched by other retailers and provides thousands of dollars above the value of other companies’ compensation offerings,” Johnson said.
In addition to the pay, stock and sick time benefits, the company “reaffirmed” its commitment to create 8,000 new retail jobs and an additional 600 manufacturing jobs in its Augusta, Ga., coffee plant. It also expanded parental leave to non-birth parents, giving them up to six weeks of paid leave.
Starbucks operates nearly 14,000 locations in the U.S. and more than 23,000 across the globe.