Bank of America increases minimum wage to $21 an hour amid labor shortages

Bank of America increases minimum wage to $21 an hour amid labor shortages
© Greg Nash

The Bank of America is increasing its minimum wage to $21 an hour amid labor shortages across the country.

The company announced the increase Wednesday, following its move in May to make all its U.S. vendors pay its employees at least $15 an hour. 

“Our company’s focus on Responsible Growth requires that we provide a great place to work,” said Sheri Bronstein, chief human resources officer at Bank of America.

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“We make broad-ranging investments to attract and develop talented teammates who serve our clients and local communities every day, and who can build long, successful careers with our company. Today, we are taking another step forward, again increasing our minimum rate of pay for U.S. employees, demonstrating our commitment to sharing our success with teammates, and inspiring others to do the same,” Bronstein added.

Bank of America has been increasing its minimum wage over the past few years, going from $15 in 2017 to $17 in 2019 to $20 in 2020.

In the announcement, the company said it wants its minimum wage to hit $25 an hour by 2025.

Democrats in Washington, meanwhile, have struggled in their push to get the federal minimum wage, currently resting at $7.25, up to $15 an hour. 

The measure has been rejected in Congress multiple times as opponents say it would be too heavy a burden on small businesses and that the minimum wage should be based on where a person works.

Multiple states have minimum wages above $10 an hour. 

Companies are looking for ways to attract employees as many industries in the U.S. are facing a labor shortage amid the ongoing coronavirus pandemic.