Gap to Increase U.S. Worker Pay to $9 an Hour

Posted on February 20, 2014

SAN FRANCISCO - Gap Inc. announced it will raise starting salaries for all U.S. workers to $9 an hour this year and to $10 an hour in 2015.

Gap operates 3,500 stores worldwide under the brands Gap, Banana Republic, Old Navy, Piperlime, Athleta and Intermix. The increase will only affect 65,000 workers in the U.S.

The company says the move is not a political issue and is good for its people and customers.

California Governor Jerry Brown signed a bill last October to raise the state's minimum wage to $9 an hour in July 2014 and to $10 an hour beginning in 2016.

Glenn Murphy, Chairman and CEO of Gap Inc., announced the increase in a letter to all workers this week and posted on the company's website. Here are parts of the letter:

Early this morning, we notified all our employees that starting here in the U.S., Gap Inc. will make a strategic investment to do more for our employees by increasing the minimum hourly rate for our employees to $9 in 2014 and $10 in 2015. This will ultimately benefit about 65,000 store employees.

To us, this is not a political issue. Our decision to invest in frontline employees will directly support our business, and is one that we expect to deliver a return many times over.

The people in our company who engage directly with our customers carry an incredible responsibility. Our success is a result of their hard work, love of fashion and commitment. We hope this decision provides them with some additional support as they grow their careers with Gap Inc.

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