Bank of America raising its minimum wage to $20 an hour

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NORFOLK, Va. (WAVY) — Some local workers are about to get a raise.

Bank of America announced it’s raising the company’s minimum wage to $20 an hour.

The bank’s CEO, Brian Moynihan, made the announcement Tuesday, one day ahead of his testimony before Congress on Wednesday. 

The wage will increase gradually from $15 to $20 an hour over the next two years.

BOA’s Hampton Roads market president, Charles Henderson Jr., told WAVY.com, “In Hampton Roads we have a very tenured group, so I’m not anticipating that a great number will be impacted by the minimum wage we’ve just announced, but certainly from a competitive standpoint, attracting top talent over the next couple of years, that’s where it’s really going to be important.”

The bank employs 650 people in Hampton Roads.

At a rate of $20 an hour, a full time worker will earn more than $40,000 a year.

More states are moving toward a $15 an hour minimum wage, but Virginia is not one of them.

A bill that would have done that died in Richmond.

Virginia Congressman Bobby Scott (D) has introduced the “Raise the Wage Act of 2019,” that would gradually raise the national minimum wage to $15 by 2024.

In a recent news release, Scott said: “After nearly 10 years with no increase in the federal minimum wage, workers have suffered a 17 percent pay cut due to inflation.”

Opponents fear the bill would hammer small businesses and cost jobs.

Republican Congresswoman Virginia Foxx of North Carolina called it “blatantly socialist.”

Henderson told WAVY.com that Bank Of America’s wage increase is part of the company’s commitment to pay a fair wage and recruit top talent.

“We feel that if we have a world class workforce, it translates into customer service and combine that with our products and services, we feel like it’s going to be a win-win for everybody.”  

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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