Tax Reform: More Than 3.5 Million Workers Have Already Benefited

Special Tax Reform Bonuses Have Been Announced For Workers At Nearly 350 Companies

SEN. MITCH McCONNELL (R-KY): “We’ve been talking for weeks about the millions of Americans who are already benefiting from tax reform. Already, millions of workers have received a tax reform bonus, pay increase, or other benefit. I understand that a 1,000-dollar, 2,000-dollar, or 3,000-dollar bonus might not seem like much to my colleagues from New York or San Francisco. I understand why people who are already very wealthy might agree with my friends the House and Senate Democratic Leaders, who’ve said that these bonuses and benefits are merely, quote, ‘crumbs.’ But I can assure them -- the working families I represent do not see a permanent raise or a multi-thousand-dollar bonus as ‘crumbs’ to sweep off their table. In millions of households, thanks to tax reform, paying the bills has already gotten a little less painful. Planning for the future has already gotten a little easier.” (Sen. McConnell, Floor Remarks, 2/6/2018)

Major Companies Which Have Announced Bonuses And Wage Hikes For American Workers Include

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)

FEDEX CORPORATION: “FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act: 1) Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance-based incentive plans for salaried personnel. 2) A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country. … more than 400,000 team members…” (FedEx Corporation, Press Release, 1/26/2018)

WELLS FARGO, 250,000+ employees: “Wells Fargo, meanwhile, also said it would be boosting its minimum wage for employees to $15 an hour. The bank alsopo 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)

CVS HEALTH, 240,000+ employees: “…CVS Health today announced three major programs that will enable employees to share in the tax savings created by the U.S. Tax Cuts and Jobs Act. The improvements in employee wages and benefits, which are long-term and sustainable compensation investments, total $425 million annually and create continued growth opportunities for the company and its employees. … CVS Health will increase the starting wage rate for hourly employees to $11 an hour, effective April 2018. … The company is also creating a new paid parental leave program.” (CVS, Press Release, 2/8/2018)

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)

BOEING, 170,000+ employees: “Boeing Chairman, President and Chief Executive Officer Dennis Muilenburg praised the tax bill passed by Congress and about to be signed into law as a critical driver of business, economic growth and innovation for the United States and for Boeing…. While Boeing is still studying all of the provisions of the new legislation, Muilenburg announced immediate commitments for an additional $300 million in investments that will move forward as a result of the new tax law:

$100 million for corporate giving, with funds used to support demand for employee gift-match programs and for investments in Boeing's focus areas for charitable giving: in education, in our communities, and for veterans and military personnel.
$100 million for workforce development in the form of training, education, and other capabilities development to meet the scale needed for rapidly evolving technologies and expanding markets.
$100 million for ‘workplace of the future’ facilities and infrastructure enhancements for Boeing employees.” (Boeing, Press Release, 12/20/2017)

VERIZON, 160,000+ employees: “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)

Stock bonuses equal about $2,500 value at current value: “Shares traded around $53 a share on Tuesday…” (“Verizon Says Many Workers Will Receive Shares Of Stock,” CNBC, 1/23/2018)

STARBUCKS: “Starbucks said Wednesday it will increase wages and enact other perks for more than 150,000 U.S. employees as a direct result of recent tax reform, joining other corporations in rewarding workers.” (“Starbucks To Increase Wages, Improve Benefits For 150K Employees,” Fox Business, 1/24/2018)

“Starbucks Corp will use some of the savings from the new U.S. corporate tax cuts to give domestic employees pay raises, company stock and expanded benefits with a combined worth of more than $250 million, the company said on Wednesday. With the announcement, the world’s biggest coffee chain joins companies like Walmart, Apple Inc, Comcast Corp, and American Airlines Group Inc in sharing their tax savings with employees...” (“Starbucks To Boost Pay, Benefits After U.S. Lowers Corporate Taxes,” Reuters, 1/24/2018)

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)

HONEYWELL, 130,000+ employees: “I am confident in Honeywell's future, and our ability to continue to deliver for our shareowners and our employees. Our strong performance in 2017, together with the enactment of new U.S. tax legislation, has enabled us to increase our 401(k) match in the U.S. This is a sustained, annual benefit that will provide a more secure retirement for our employees.” (Honeywell, Press Release, 1/26/2018)

DISNEY: “Walt Disney Co. said it will give employees a one-time cash bonus of $1,000, joining a growing list of companies handing out awards in the wake of federal tax reform.” (“Disney To Give Employees $1,000 Bonuses In Wake Of Tax Reform,” Bloomberg, 1/23/2018)

“Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company, today announced, more than 125,000 eligible employees will receive a one-time $1,000 cash bonus. The Company will also make an initial investment of $50 million in a new and ongoing education program specifically designed to cover tuition costs for hourly employees. The two new initiatives are a result of the recently enacted tax reform and represent a total allocation of more than $175 million in this fiscal year.” (Disney, Press Release, 1/23/2018)

TYSON FOODS, INC.: “…we’re investing our federal tax reform savings in the areas we believe will make the biggest difference, including our team members and capital projects. With the more than $300 million in savings we expect to receive, we will: Provide a one-time bonus to more than 100,000 team members whose compensation does not include an annual bonus. Eligible full-time team members will receive $1,000, and eligible part-time team members will receive $500.” (Tyson Foods, Press Release, 2/8/2018)

AMERICAN AIRLINES, 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)

BEST BUY: “In a letter to employees Friday, CEO Hubert Joly said full-time workers will receive a one-time bonus of $1,000 and part-timers, $500. All permanent employees who are not on an existing bonus plan will receive the additional funds. The bonuses will show up in workers’ paychecks this month. In all, more than 100,000 of Best Buy’s 125,000 employees in the U.S., Mexico and Canada are expected to receive the extra cash.” (“Best Buy Giving Bonuses Because Of Corporate Tax Cuts,” Minneapolis Star Tribune, 2/2/2018)

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)

CHARTER COMMUNICATIONS, 94,000 employees: “With the resources and investment confidence resulting from historic tax reform legislation and the FCC’s removal of the 1930s era regulatory framework for internet service, Charter is increasing our investment in our workforce by ensuring all employees are paid a minimum wage of at least $15 per hour, including target commissions, within the next year.” (Charter, Press Release, 2/2/2018)

PFIZER, Inc, 90,000+ employees: “In fourth-quarter 2017, following the passage of the TCJA, Pfizer … also has allocated approximately $100 million for a special, one-time bonus to be paid to all non-executive Pfizer colleagues in first-quarter 2018.” (Pfizer, Press Release, 1/30/2018)

CHIPOTLE, 60,000+ employees: “With regard to the impact of the Tax Cuts and Jobs Act, Jack Hartung, Chief Financial Officer, said, ‘We’re pleased that the lower income tax rate from the tax law change will result in savings of approximately $40 to $50 million in 2018. We plan to invest more than one-third of these tax savings in our people, including by making all of our restaurant managers and crew eligible for a one-time cash bonus, awarding one-time stock bonuses to a broad group of staff employees, and enhancing a number of other benefits such as parental leave and short term disability, all to help position Chipotle as the employer of choice in the restaurant industry.” (Chipotle, 4^th Quarter Earnings Report, 2/6/2018)

FIAT CHRYSLER: “Fiat Chrysler Automobiles NV is investing $1 billion in a Michigan truck factory and paying worker bonuses in the wake of a U.S. tax cut, gestures that could come in handy amid major policy matters being sorted out in Washington. The Italian-American automaker will share the spoils of a lower corporate tax rate by sending $2,000 checks to about 60,000 U.S. workers. Fiat Chrysler also will spend more than $1 billion and add 2,500 jobs at a factory near Detroit to produce heavy-duty Ram pickups that the company has been making in Mexico.” (“Fiat Chrysler to Invest $1 Billion, Pay Bonus After Tax Cut,” Bloomberg, 1/11/2018)

MERCK, 60,000+ employees: “The recently enacted U.S. tax legislation improves Merck’s financial flexibility to invest in sustainable long-term value creating opportunities. … Plans to provide a one-time, long-term incentive award for its eligible non-executive employees in the second quarter of 2018.” (Merck, Press Release, 2/2/18)

U.S. BANCORP: “Minneapolis-based U.S. Bancorp today announced a $1,000 bonus for nearly 60,000 employees, a new minimum wage of $15 per hour for all hourly employees and a $150 million contribution to the U.S. Bank Foundation.” (“Banks Continue Post-Tax Reform Wage Increases, Community Investments,” Banking Journal, 1/2/2018)

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 Parttime 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)

METLIFE, 50,000+ employees: “MetLife, Inc. announced today that in light of tax reform, the company will increase the investment it makes in its employees. The company will strengthen financial security for U.S. employees by increasing the minimum wage it pays, enhancing benefits, and boosting contributions to retirement plans. It will also create a new $10 million skills development fund to help its employees around the world upgrade their workplace skills. ‘As a result of tax reform, we are making a significant investment in our employees. We are enhancing pay and benefit programs and helping them develop skills that will make them more valuable members of our team,’ said Chairman, President and CEO Steven A. Kandarian.” (Metlife, Press Release, 2/12/2018)

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)

PNC BANK: “PNC Financial Services Group announced today it would be investing in its employees with cash, retirement fund cash and an increase in minimum pay following today’s signing of the tax reform bill. The company said it will provide an additional $1000 cash payment to 47,500 employees and $1,500 to their existing pension accounts. The cash payment to 47,500 employees was estimated to reach 90% of PNC employees…” (“PNC Bank Announces Employee Cash bonuses After Tax Reform Bill,” CBS Pittsburgh, 12/22/2017)

CAPITOL ONE: Raising its base wage to $15 per hour for U.S. employees. Capitol 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)

CIGNA, 40,000 employees: “Cigna… today announced that the net financial benefits of United States tax reform will allow the company to further accelerate investments in our employees, our capabilities and our customers, clients, partners, and communities. Cigna Raises Minimum Wage to $16.00 an hour; Provides Additional $15 Million in Salary Raises, Largely for Front Line Employees; Adds $30 Million to Employee 401(k) Match Program.” (Cigna, Press Release, 1/31/2018)

QUEST: “Tax Reform Benefit: In 2018 the company expects to realize approximately $180 million in tax savings on an adjusted basis. Of this amount, the company plans to reinvest roughly $75 million before tax back into the business and its employees, resulting in a benefit of approximately $120 million to net earnings. Investment initiatives include: Advanced diagnostics innovation through new tests and high-touch concierge services; Investments to deliver a consistently excellent consumer experience both online through the MyQuest mobile patient application and patient service centers; and A bonus of up to $500 for nearly 40,000 employees to be paid based on the company's performance in 2018.” (Quest, Press Release, 2/1/2018)

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)

U-HAUL: “Officials with U-Haul say Friday its employees will receive a one-time bonus, as a result of the tax cut bill that was signed by President Donald Trump. According to a statement, full-time team members will get a $1,200 bonus, while part-time employees will get $500. The bonuses, which will be issued by the end of February, will cost the company $23 million. Officials say over 28,000 workers will benefit from the bonus…” (“U-Haul To Give Its Employees A One-Time Bonus, As A Result Of Tax Cut,” Fox10, 2/9/2018)

BB&T CORP.: “Nearly three-fourths of BB&T Corp.’s employees will get a one-time $1,200 bonus in January as part of the bank’s response to the corporate tax rate cut signed into law Friday by President Donald Trump. … About 27,000 BB&T employees will receive the bonus. ... The bank had 37,189 employees as of Sept. 30, according to a regulatory filing. The bank also will raise its minimum hourly wage to $15 from $12 on Jan. 1, as well as provide $100 million to the bank’s philanthropic fund.” (“Banks Plan Bonuses, Wage Increases As A Result Of Tax Reform,” Martinsville Bulletin, 12/26/2017)

JPMORGAN CHASE: “JPMorgan Chase today announced a $20 billion, five-year comprehensive investment to help its employees, and support job and local economic growth in the United States. The firm has always believed that the highest and best use of its capital is to support employees and local communities and businesses by doing what a bank is supposed to do: lending and investing.” (JPMorgan, Press Release, 1/23/2018)

“The $20 billion investment will focus on the following key areas … Investing in employees with increases to wages and benefits. … The firm will raise wages from between $12/hour and $16.50/hour to between $15/hour and $18/hour in over 100 cities, depending on the local cost of living, effective February 25. This will benefit 22,000 full-and part-time U.S. hourly employees, notably in branches and customer service centers, in an effort to attract and retain great employees. … Later this month, eligible employees will receive an annual award of $750, which was communicated in December 2017.” (JPMorgan, Press Release, 1/23/2018)

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)

HARRIS CORPORATION, 17,000 employees: “Harris Corporation today announced that, as a result of the passage of the tax reform bill, the company anticipates making an additional contribution to its employee pension fund, increasing its investment in research and development, and providing a one-time stock grant to all of its non-executive employees. … Highlights: Expecting to contribute additional $300 million to employee pension fund; Adding $20 million investment in innovation; Granting non-executive employees approximately $24 million in stock awards.” (Harris Corporation, Press Release, 1/30/2018)

THE TRAVELERS COMPANIES, INC.: “…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, 12/22/2017)

FIFTH THIRD BANK: “Fifth Third Bancorp will pay more than 13,500 employees a bonus and raise the minimum wage for its workforce to $15 after the passage of the Republican tax plan that will cut the bank's corporate tax rate.” (“Wells Fargo, Fifth Third Bancorp Unveil Minimum Wage Hikes After Tax Bill Passage,” CNBC, 12/20/2017)

CITIZENS FINANCIAL GROUP, INC.: “Citizens Financial Group, Inc. … announced a year-end decision to make additional investments in its colleagues and the communities it serves following the new law on federal tax reform. Specifically, the bank plans to: Grant approximately 12,500 colleagues a one-time $1,000 cash bonus, a cost of $12.5 million.” (Citizens Financial Group, Press Release, 1/2/2018)

TOTAL SYSTEM SERVICES INC.: “Total System Services Inc. … is crediting tax reform for cash bonuses going to their team members worldwide. A spokesperson for the Columbus, Ga.-based credit card processor best known as TSYS told Atlanta Business Chronicle that it made an internal announcement Tuesday that team members would receive a ‘special one-time cash bonus of $1,000’ as ‘a result of the company’s continued success and the recently passed U.S. tax reform legislation.’ TSYS, which is celebrating its 35th anniversary in 2018, has about 11,500 employees…” (“TSYS Credits Tax Reform For $1K 'One-Time Cash Bonus' To Team Members,” Atlanta Business Chronicle, 1/2/2018)

VISA, 11,000+ employees: “Visa? is raising its 401(k) matching for employees in response to tax reform.” (@CNBCnow, Twitter, 1/8/2018)

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)

AFLAC: “…as a result of the recent tax reforms enacted by Congress… Effective in 2018, Aflac makes the following commitment to our U.S. workforce: Increase 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. Offer certain hospital and accident insurance products to all employees free of charge, as the company currently does with its core cancer insurance product.” (Aflac, Press Release, 12/28/2017)

AMERICAN FAMILY INSURANCE: “American Family Insurance said Friday it will give 11,000 workers a one-time bonus of $1,000, becoming the latest U.S. company to pass some of the savings from federal tax reform to employees.” (“American Family Insurance Joins List Of Companies Giving Bonuses To Employees After Tax Cut,” Milwaukee Journal Sentinel, 1/26/2018)