15 Companies That Raised Their Minimum Wage in 2022

The current federal minimum wage for covered nonexempt workers is $7.25 per hour -- and it hasn't changed since the summer of 2009! That's 13 years during which prices rose, housing costs increased, and many people received raises -- and it has left many workers earning around $15,000 per year, very close to the recent poverty level of $13,590 for a single-person family or household. Meanwhile, a Brookings Institution report looked at 22 large companies that together employ about 7 million people. It found that "despite the fact that more than half of companies increased their minimum wages during the pandemic, not one pays a minimum wage today that meets the living wage standard" -- which Brookings calculated to be about $17.70 per hour.

Still, any progress away from $7.25 is good. Here are 15 companies that have hiked their minimum wage in 2022.

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Bank of America (NYSE: BAC) announced in May that it was boosting its U.S. minimum hourly wage to $22, with plans to get it to $25 by 2025. That gets its lowest-paid worker an annual income of $45,760, pre-tax, and when the rate is $25, it will be $52,000. The bank, one of the largest in the world, hiked its minimum wage to $15 back in 2017, and it was $21 before this most recent increase.

In March of 2022, the retailing giant Target (NYSE: TGT) targeted minimum hourly wages of up to $24 per hour to take effect this year, depending on "the job, the market and local wage data, among other factors." So some workers will likely remain at the recent $15 hourly wage. With a recent market value near $70 billion and close to 2,000 stores (including an active e-commerce channel), Target has been giving 5% of its profits to communities where it operates since 1946.

Starbucks (NASDAQ: SBUX), the global coffeehouse powerhouse, is in a state of flux. Howard Schultz, its longtime and three-time CEO, is stepping down next year. Several hundred of its locations are petitioning to unionize, and some have already unionized. The company announced in May that it would increase its minimum wage for nonunion workers to $15 this summer, along with delivering raises to many workers of up to 10%.

ALSO READ: Why Starbucks Stock Is Down 35% So Far in 2022

In April of this year, Verizon Communications (NYSE: VZ) announced that it would increase its minimum wage for new employees to $20 for customer service, retail, and inside sales workers, and that it would increase the wage for existing workers in those fields to $20 as well. Verizon is a massive telecommunications operation, with annual revenue topping $133 billion and a recent market value near $213 billion.

In late 2021, T-Mobile (NASDAQ: TMUS), a competitor to Verizon with a market value recently near $171 billion, announced a nationwide minimum annual wage of "at least $20 per hour." While some companies increasing minimum wages have limited the increases to certain segments of workers, T-Mobile is applying its increase "to every single employee regardless of role, or full-time or part-time status." It also notes that "the vast majority of our employees already earn well above this level, especially when including incentive pay."

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Walmart (NYSE: WMT ) is one of earth's biggest employers, recently with around 2.3 million workers, so its minimum wage is a big deal, affecting many. The company hiked its minimum to $12 per hour last year, and more in some locations, with the average hourly wage rising to $16.40. More recently, Walmart announced wage increases to an average of $20 hourly for its 36,000-plus pharmacy technicians, with more frequent raises.

ALSO READ: Walmart Faces Inflation Woes, but Consumers Could Find a Silver Lining

In March, Charter Communications (NASDAQ: CHTR) announced a $20 minimum hourly wage (including target commissions) for all employees. With a market value recently near $78 billion, Charter is "a leading broadband connectivity company and cable operator serving more than 32 million customers in 41 states through its Spectrum brand."

While tech titan Microsoft (NASDAQ: MSFT) didn't exactly announce a minimum wage hike in 2022 (as of the time of this writing), it did make a number of interesting wage-related moves. For one thing, the company is committing to publishing salary ranges for all U.S. job postings. It's also "nearly doubling" its budget for salary increases and merit pay, while upping the stock compensation given to some workers.

Apple (NASDAQ: AAPL) announced in May that it would increase its starting pay for U.S. workers to $22 per hour -- or more, in some locations. As of late last year, Apple had more than 150,000 full-time-equivalent employees.

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Pharmacy giant CVS Health (NYSE: CVS) announced last year that, by this summer, it would sport a minimum hourly wage of $15 for all employees, up from a previous $11 minimum. It also planned to up starting rates for certain positions, such as pharmacy technicians. CVS Health recently employed more than 300,000 people.

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Fifth Third Bancorp (NASDAQ: FITB) announced in April that it was upping its minimum hourly wage to $20 as of July 4, while also increasing pay for its first four job levels. Altogether, these moves will deliver a pay bump to more than 40% of its workforce. The new $20 rate "will benefit nearly 95% of employees in retail branches and operations support functions, including customer contact centers."

In March, Spain-based Banco Santander (NYSE: SAN) announced an increase in its minimum wage for U.S. workers to $20 per hour, up 16% for Santander Consumer USA workers over a two-year period. U.S. workers who've been around a while have had multiple increases, as the company's upped its minimum pay by more than a third between 2018 and 2022. Santander recently sported a market value near $45 billion.

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In December of 2021, the Oklahoma-based and privately held craft retailer Hobby Lobby announced that after a minimum wage increase to $15 per hour in 2014 and an increase to $17 in 2020, it was once again hiking that wage -- this time to $18.50 per hour, beginning in 2022. The company recently boasted more than 900 stores and more than 43,000 workers.

Walgreens Boots Alliance (NASDAQ: WBA) announced last summer that it would hike its minimum hourly wage to $15 -- with the increase taking place gradually and being in full effect by late 2022. CEO Roz Brewer noted, "Investing in and rewarding our team members is not only the right thing to do, it's highly important to retaining and attracting a talented workforce." The company has close to 9,000 locations, serves some 9 million customers daily, and as of last year, employed more than 300,000 people -- more than 100,000 of them on a part-time basis.

ALSO READ: 3 Things About Walgreens That Smart Investors Know

Along with the big companies already mentioned, gobs of other businesses are or will soon be offering their workers higher minimum wages -- because they have to, by law. That's because many state and local governments have been increasing minimum wages. In Colorado, for example, 2022 ushered in a statewide increase from $12 to $12.56 per hour -- and an increase to $9.54 per hour for those who earn tips sufficient to meet or exceed the minimum wage. So any big national companies with minimum wages below $12.56 will have to start paying their Colorado workers at least $12.56. Connecticut has recently upped its minimum from $13 to $14 per hour, and the District of Columbia from $15.20 to $16.10.

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It's safe to expect more increases from many more employers and governments, for a variety of reasons. For one thing, the unemployment rate has been quite low lately, making it hard for companies to be fully staffed. Higher wages can attract and keep workers, helping companies compete. Another factor is inflation, which has been high recently, stretching many workers thin. Higher wages can help them get by.

Bank of America is an advertising partner of The Ascent, a Motley Fool company. Selena Maranjian has positions in Apple, Microsoft, and Starbucks. The Motley Fool has positions in and recommends Apple, Microsoft, Starbucks, and Target. The Motley Fool recommends CVS Health, CVS Health Corporation, T-Mobile US, and Verizon Communications and recommends the following options: long March 2023 $120 calls on Apple, short July 2022 $85 calls on Starbucks, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.