Bank of America raises minimum wage to $21 as worker shortage continues

Bank of America announced it would raise its minimum wage to $21 as businesses across the country continue to experience labor shortages.

The move from the second-largest bank follows an earlier announcement from May when it vowed to pay its employees $25 per hour by 2025 and required all U.S. vendors to pay employees at least $15 per hour or more. The company is also requiring its U.S. vendors pay their workers who are dedicated to the bank’s business at least $15 an hour. Bank of America went from having a $15 minimum wage in 2017, $17 in 2019, to $20 in 2020.

Companies have continued to cite labor shortages related to the pandemic, even as federal unemployment benefits ended about a month ago. The U.S. economy added 194,000 jobs in September, according to data released from the Department of Labor, marking the second month in a row of low job growth [Washington Examiner].

The new minimum wage means its workers now make $43,680 a year, with benefits. The increase is part of an effort to “attract and develop talented teammates,” Sheri Bronstein, chief human resources officer at BofA, said in a statement. The bank hopes the move inspires “others to do the same,” she added [CBS News].



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