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Starbucks offers all U.S. hourly workers paid leave benefits this year

Starbucks just became the latest company to add paid leave benefits for its hourly workers. Baristas and other retail personnel–called “partners” by the company–will get time off to welcome a baby or care for a sick loved one. As of April 2018, the new parental leave policy will include up to 6 weeks of paid … Continue reading “Starbucks offers all U.S. hourly workers paid leave benefits this year”

Starbucks offers all U.S. hourly workers paid leave benefits this year
[Photo: Flickr user HAO XING]

Starbucks just became the latest company to add paid leave benefits for its hourly workers. Baristas and other retail personnel–called “partners” by the company–will get time off to welcome a baby or care for a sick loved one.

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As of April 2018, the new parental leave policy will include up to 6 weeks of paid leave for the birth mother and all non-birth parents.

It will also “allow partners to accrue paid sick time based on hours worked and then use them if they or a family member needs care. Sick Time will accrue at a rate of one hour for every 30 hours worked, thus a partner working 23 hours a week can expect to accrue approximately five days of sick time benefit over the course of one year.”

Hourly employees will also get a pay bump as of April, when all eligible U.S. hourly and salaried partners will receive a second wage increase in addition to what they’ve already received this fiscal year. “This will include an investment of approximately $120 million in wage increases that will be allocated based on regional cost of living and laws that vary from state to state,” according to a company statement.

This comes on the heels of a similar announcement from Walmart that raised the minimum wage for hourly workers and added paid time off benefits.

Starbucks says that this will cost the company more than $250 million to cover more than 150,000 partners. The company is still planning to create more than 8,000 new part-time and full-time retail jobs and an additional 500 manufacturing jobs in its Augusta, Georgia, soluble coffee plant.

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About the author

Lydia Dishman is a reporter writing about the intersection of tech, leadership, and innovation. She is a regular contributor to Fast Company and has written for CBS Moneywatch, Fortune, The Guardian, Popular Science, and the New York Times, among others.

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