Though most employees are apparently making more than that already
Entry-level positions at T-Mobile might see a flurry of job applications soon. Yesterday T-Mobile’s new CEO, Mike Sievert, announced that the company would set a new, higher minimum wage for both full-time and part-time employees in the US. Although the company claims most of its employees are already making more than this, T-Mobile has imposed a new $20 an hour minimum wage.
Sievert claims the company has been testing this wage increase among its Customer Care group for the last few months and saw over a 1,200% increase in applications. T-Mobile also offers all its employees annual stock grants (after “after a year or less” of employment), among a pretty chunky list of other benefits, including paid time off and tuition assistance — though some of those benefits probably vary by role.
“Every single employee at T-Mobile, even our newest team members just starting to build their skill base, should have a competitive wage. So, we have decided to implement a nationwide minimum pay at T-Mobile of at least $20 per hour. This will now apply to every single employee regardless of role, or full-time or part-time status. The truth is, the vast majority of our employees already earn well above this level, especially when including incentive pay. But this move is about inclusion, and we wanted to draw a line that ensures no employee is left behind.” – Mike Sievert
In comparison, the federal minimum wage (which about half of US states follow) remains $7.25 an hour, a number set in 2009. Some areas further impose their own higher minimum wage. California increased its minimum wage to $13-14 an hour this year, with a bump to $14-15 planned for next year. Right now, Washington DC’s minimum wage is the highest at $15.20. That means T-Mobile’s nationwide minimum wave is now 31% above the highest state/district’s and 175% higher than the federal minimum.
Even Costco, a company often praised for its treatment of employees, only just raised its minimum wage to $17 an hour. Amazon, usually criticized for the exact opposite, recently increased to an $18 minimum (with up to $22.50 in some locations).
Among an ongoing “labor shortage” that some attribute to factors including low wages, this change almost guarantees a flurry of job applications and a lot of happy T-Mobile employees.
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