01.26.18

For American Workers Tax Reform Continues To Deliver

Quack, Quack...

AFLAC is increasing “the company's 401(k) match, from 50% to 100% on the first 4% of employee contribution, while making a one-time contribution of $500 to every employee's 401(k) plan.”

 

And recent announcements from Home Depot and Starbucks further prove tax relief is working. CNBC reportsStarbucks will “give domestic employees pay raises, company stock, and expanded benefits. The enhanced compensation is worth of more than $250 million, the company said.” And Home Depot will be “awarding its hourly employees in the U.S. a one-time cash bonus of as much as $1,000 following the passage of new tax legislation.”

 

And just a few other companies that are passing on the benefits of tax relief that employ Coloradans include:

 

BANK OF COLORADO: “Bank of Colorado is paying a special bonus of $1,000 to each full-time associate to share the benefit of the tax cut passed earlier this month by Congress. President of Bank of Colorado, Shawn Osthoff said, “We feel strongly that the message should be loud and clear that this is a tax cut that will benefit all Americans.”Bank of Colorado has 641 associates in Colorado and New Mexico. (“Bank of Colorado to pay special bonus to employees after receiving tax cut,” Denver Post, 1/5/2018).

 

FedEx: “FedEx says it'll be giving wage increases, bonuses and make a voluntary $1.5 billion contribution to the company's pension plan, citing recent tax reform legislation.”(FedEx to give wage increases, bonuses to workers,” ABC News, 1/25/2018).

 

JPMORGAN CHASE: “J.P. Morgan Chase announced plans to spend $20 billion over five years to raise hourly pay for a portion of its workforce, add jobs and open 400 branches in new U.S. locations. The bank says tax breaks, reduced regulation and an improved business climate have made it possible to make these changes, which also includes adding 4,000 jobs and increasing its charitable giving.” (“JP Morgan Chase To Build 400 New Branches, Raise Wages Because Of The Tax Cut,” CNBC, 1/23/2018)

 

VERIZON: “Verizon says employees (other than top management) will receive 50 shares of restricted stock, the price of which will be set on February 1. The award could total over $400 million, based on Verizon's current share price. Shares traded around $53 a share on Tuesday, after quarterly earnings were released.” (“Verizon Says Many Workers Will Receive Shares Of Stock,” CNBC, 1/23/2018)

 

WALMART: “Today, Walmart announced plans to increase the starting wage rate for all hourly associates in the U.S. to $11, expand maternity and parental leave benefits and provide a one-time cash bonus for eligible associates of up to $1,000. The company is also creating a new benefit to assist associates with adoption expenses. The combined wage and benefit changes will benefit the company’s more than one million U.S. hourly associates.” (Walmart, Press Release, 1/11/2018)

 

WELLS FARGO: With 250,000 plus employees “Wells Fargo, meanwhile, also said it would be boosting its minimum wage for employees to $15 an hour. The bank also said it would target $400 million in donations to community and nonprofit organizations next year. (“Wells Fargo, Fifth Third Bancorp Unveil Minimum Wage Hikes After Tax Bill Passage,” CNBC, 12/20/2017)

 

AT&T: “AT&T Is Giving $1,000 Bonuses To 200,000 Employees After Tax Bill: AT&T was quick to respond to news of U.S. tax reform, announcing it would give some employees bonuses once the legislation is signed into law. The telecom giant said in a press release Wednesday that it would give more than 200,000 U.S. union members a special bonus of $1,000.” (“AT&T Is Giving $1,000 Bonuses To 200,000 Employees After Tax Bill,” CNBC, 12/20/2017)

 

DARDEN RESTAURANTS: “Restaurant companies are joining the corporate chorus rushing to praise the tax bill Congress passed last month as Orlando-based Darden Restaurants said the legislation will save it about $70 million. Olive Garden and LongHorn Steakhouse parent company Darden Restaurants said the new tax reform plan will cut taxes by about $70 million in the third quarter. The Orlando-based restaurant chain said Monday the tax cut will prompt it to spend an additional $20 million on its 175,000-plus employees this year…” (“Darden Says Tax Reform Will Save It $70 Million,” Orlando Sentinel, 1/8/2018)

 

BANK OF AMERICA: “Bank of America will give some of its employees a $1,000 bonus, citing the tax bill that was just signed into law. ‘Beginning in 2018, we will see benefits from the tax reform ... in the form of lower corporate tax rates,’ CEO Brian Moynihan said in an internal memo to employees obtained by CNBC. He also said that about 145,000 employees will receive the bonus.” (“Bank Of America Is Giving Some Employees A $1,000 Bonus, Citing Tax Bill,” CNBC, 12/22/2017)

 

AMERICAN AIRLINES: To more than 100,000 employees “We are pleased to announce that in light of this new tax structure and in recognition of our outstanding team members, American will distribute $1,000 to each team member (excluding Officers) at our mainline and wholly owned regional carriers. These distributions will total approximately $130 million and will be made in the first quarter of 2018.” (American Airlines, Press Release, 1/2/2018)

 

COMCAST: “Based on the passage of tax reform … Brian L. Roberts, Chairman and CEO of Comcast NBCUniversal, announced that the Company would award special $1,000 bonuses to more than one hundred thousand eligible frontline and non-executive employees.” (Comcast, Press Release, 12/20/2017)

 

SOUTHWEST: To more than 55,000 employees: “The Southwest Board of Directors authorized a bonus to all Southwest Airlines Employees to celebrate the recent passage of the tax reform legislation. All Fulltime and Part-time Southwest Employees employed with Southwest on Dec. 31, 2017, will receive a $1,000 cash bonus on Jan. 8, 2018.” (Southwest, Press Release, 1/2/2018)

 

HUMANA: To more than 50,000 employees: “Humana will extend the offer new incentive pay and increase its minimum wage for employees, a move that it credited to federal tax reform. A note sent to employees said that ‘like many U.S. companies, Humana will begin benefitting this year from a lower corporate income tax rate. This provides Humana with the opportunity to make an investment in our employees, using the proceeds from tax reform to further the long-term financial health and well-being of our employee population.’” (“Humana Will Share The Wealth From Tax Cut With New Incentive Pay, Boosted Minimum Wage,” Courier Journal, 1/17/2018)

 

CAPITAL ONE: Raising its base wage to $15 per hour for U.S. employees. Capital One employs approximately 47,000 people. (“Breaking: Capital One Will Raise Base Wage for U.S. Employees to $15 per Hour,” Americans For Tax Reform, 1/11/2018)

 

WASTE MANAGEMENT, INC.: “Waste Management, Inc. announced today that, in light of the meaningful contributions of its employees and the new U.S. corporate tax structure, the company will distribute US $2,000 in 2018 to every North American employee not on a bonus or sales incentive plan; that includes hourly and other employees. …said Jim Fish, president and chief executive officer, Waste Management. ‘So, we are offering each North American hourly full-time employee and salaried employee who does not participate in any sales incentive or bonus plan during 2018, a cash bonus of US $2,000 to show our appreciation to so many of our valued employees while growing our business and returning a good portion of the tax savings directly to the overall economy,’ he continued. Approximately 34,000 qualified Waste Management employees could receive this special bonus.” (Waste Management, Inc., Press Release, 1/10/2018)

 

NATIONWIDE INSURANCE: “Employees of Nationwide Insurance found out Wednesday they’ll be seeing a big bonus and an increase in 401(k) matching from the company. In an email sent to employees, the company announced it will provide bonuses of $1,000 and increase 401(k) matching from 50 percent on the first 6 percent of employee contribution to 50 percent on the first 7 percent of employee contribution. The company said in a statement the one-time bonus impacts approximately 29,000 front-line associates, managers and individual contributors across the country. The 401(k) action impacts approximately 33,000 associates.” (“Nationwide Gives Big Bonuses, Credits Tax Reform,” KCCI8, 1/3/2018)

 

OLD DOMINION FREIGHT LINE INC.: CEO David Congdon on issuing $500 bonuses to 22,000 employees: “I am excited to share a bit of good holiday cheer with you today. The President has signed a historic tax reform bill that should reduce OD’s taxes and also generate growth for the U.S. economy. We expect that the anticipated improvement in the economy will create additional opportunities for use to WIN market share and grow our Company more than originally anticipated. … As a way of saying THANK YOU for continuing to deliver best-in-class service, and to share part of our anticipated 2017 tax savings with you, a one-time bonus payment for non-executives will be included in your paycheck this week.” (Old Dominion Freight Line, Inc., Press Release, 1/2018)

 

ALASKA AIRLINES: “Alaska Air Group said Thursday it has approved special one-time bonuses of $1,000 each for its 22,000 workers after Congress approved the Trump administration's corporate tax cut package. The money will be paid out to employees who work for Alaska Airlines as well as staff at its Virgin America, Horizon Air and McGee Air Services affiliates in Seattle and in other cities in the Pacific Northwest, Alaska and elsewhere across the United States, Alaska spokesman Bryan Zidar said. ... The bonuses will be shared with workers on Jan. 26, the company said.” (“Alaska Air Group Awards $1,000 Bonuses To Workers After Trump Tax Cut,” Puget Sound Business Journal, 1/4/2018)

 

JETBLUE: On January 4, 2018 the JetBlue Senior Leadership Team shared the following note regarding the airline’s plan to distribute $1,000 to all of its 21,000 crewmembers… When tax reform looked like a real possibility late last year, we formed a team to think through what it could mean for each of these important groups. Many ideas are on the table but we believe our Crewmembers should be the first to benefit. With that in mind, we are excited to announce we will be paying every Crewmember employed as of December 31, 2017, a $1,000 bonus by the end of February!” (JetBlue, Press Release, 1/4/2018)

 

THE TRAVELERS COMPANIES, INC.: “Joining a growing list of companies handing out cash in the wake of federal legislation that slashes corporate tax rates, the Travelers Cos. Inc. told its staff Friday it will give bonuses of $1,000 to thousands of employees. Chief Executive Officer Alan Schnitzer said in a letter to employees that Travelers will give the bonuses in January to about 14,000 employees with a base salary of $75,000 a year or less and who meet ‘performance expectations.’” (“Travelers Cites US Tax Overhaul In Pledging $1,000 Worker Bonus,” Hartford Courant, 1/16/2018)

 

###