Following the passage of December’s federal tax overhaul, Mooresville-based Lowe’s said Thursday it is expanding its benefits, including parental leave and adoption assistance. The home-improvement company is also offering a one-time bonus of up to $1,000 to its hourly employees.
A spokeswoman said all eligible hourly workers will receive their cash bonus in their paycheck by Feb. 18. Lowe’s has more than 260,000 hourly workers.
Lowe’s confirmed that the bonuses will be paid on a sliding scale based on tenure, as first reported by CNBC. Here is how the scale works:
▪ Less than 2 years: Full-time workers = $150; Part-time workers = $75
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▪ 2-4 years: Full-time workers = $200; Part-time workers = $100
▪ 5-9 years: Full-time workers = $300; Part-time workers = $150
▪ 10-14 years: Full-time workers = $500; Part-time workers = $250
▪ 15-19 years: Full-time workers = $750; Part-time workers = $375
▪ 20+ years: Full-time workers = $1,000; Part-time workers = $500
In a statement, Lowe’s said the tax reform bill will result in additional net tax expense of about $75 million in the fourth quarter of 2017. The retailer says the charge, along with the one-time bonus, is expected to negatively impact its earnings per share by $0.14.
Lowe’s reports its fourth quarter earnings Feb. 28.
“Today’s announcement is another example of how we will continue to invest in our employee and customer experience as we continue to evaluate the impact of tax reform,” Lowe’s CEO Robert Niblock said in the statement.
Lowe’s joins other Charlotte-area companies – including Bank of America, Wells Fargo and American Airlines – in passing along the savings from the tax reform bill that slashed the corporate tax rate (what companies pay on their profits) from 35 percent to 21 percent.
Lowe’s rival, Atlanta-based Home Depot, also announced plans last month to give a one-time cash bonus of up to $1,000 to its hourly workers.
Here are the details of the expanded benefits Lowe’s is offering:
▪ 10 weeks of paid maternity leave and two weeks of paid parental leave.
▪ An adoption assistance benefit to cover up to $5,000 in expenses for agency, legal and other fees.
▪ Eligibility to enroll in health benefits sooner.