In a news release today, Target (NYSE:TGT) announced that it is raising all hourly wages paid to its associates by $2 per hour, effective immediately and continuing "at least" through May 2. The company says these bonuses will give both part-time and full-time workers anywhere from $240 to $480 more during the period. Hourly team leads who oversee store departments will additionally receive bonuses ranging from $250 to $1,500, slated to be paid in April.
Simultaneously, the company is offering paid leave to people who might be highly vulnerable to the coronavirus. These include employees with medical conditions, who are pregnant, or who are 65 years old or older. Workers can take up to 30 days of paid leave under this policy. Target is also providing confirmed illness and quarantine pay and temporarily waiving its absenteeism policy.
Out of the $300 million Target earmarked to cover the pay raises, bonuses, and other programs, it is also donating $10 million to several different relief funds. $1 million will go to the Target Team Member Giving Fund to help out employees who fall ill with coronavirus. $5 million will be directed to state and local foundations, $3 million to Feeding America and other national foundations, and $1 million to worldwide medical relief organizations like UNICEF.
Target took these actions in response to the big-box retail surge as people try to stock up on staples ranging from food to toilet paper as the coronavirus continues to spread. The extra pay may work as an incentive to keep employees on the job and store shelves restocked.