Wal-Mart Stores Inc. will raise its base salaries at 1,434 stores to comply with minimum wage hikes that will go into effect in 21 states beginning Jan. 1, 2015.
“Essentially that wage compression at the upper level of the hourly associate is going to help absorb that cost of the wage increase at the lower level,” a Wal-Mart manager told Reuters on condition of anonymity.
Wal-Mart employs 1.3 million people — the largest private employer in the U.S. The company said in November that its response to the new minimum wage laws and rising health care costs have increased operating expenses by 3.5 percent, Reuters reported.
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