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Starbucks is elevating wages for baristas because the restaurant trade prepares for a minimal wage hike

A worker stands in Starbucks in Midtown during the coronavirus pandemic in New York City on May 20, 2020.

Noam Galai | Getty Images

Starbucks increases hourly wages for its baristas as the restaurant industry prepares for a higher minimum wage when President-elect Joe Biden takes office.

Starting December 14th, baristas, shift supervisors and cafeteria attendants hired before September 24th will receive a minimum pay increase of 10%. This emerges from an internal memo from CNBC. Employees who have worked at a company-operated location receive an increase of at least 11%. Starting wages will be increased by 5% to help cafe managers find more staff.

The coffee chain is known for providing more generous benefits and wages to its workers compared to other retailers and national restaurant chains. It already pays off above the minimum wage.

Business Insider first covered the memo from Rossann Williams, president of corporate-operated Starbucks locations in the US and Canada. Williams wrote the memo on November 2nd, the day before the presidential election.

In March, Starbucks was among companies offering disaster money to its workers as Covid-19 cases increased in the US. When cafes reopened in the home market, the company began to phase out.

The wage increases come when voters express their support for a higher minimum wage. Federal wages have been $ 7.25 an hour for more than a decade, and the hospitality industry expects an increase during Biden's tenure as president.

States and cities are more proactive. Florida recently decided to increase its wage floor over the next six years until it hits $ 15 an hour. It is the eighth state to approve a minimum wage of $ 15 an hour and the second largest state to do so.

Correction: The federal minimum wage is $ 7.25 per hour.

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