By Lauren
Thomas | CNBC News
Getty Images: A
Home Depot store in Miami, Florida.
- Home
Depot joins a growing list of corporations using new tax benefits to
invest in their workers.
- Certain
additional expenses and the bonus payments will negatively impact Home
Depot's fiscal 2017 earnings.
- Home
Depot is still evaluating how new tax legislation will impact the business
in fiscal 2018, but said it should be "beneficial."
Home Depot is 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.
The
bonus amounts will be determined based on a person's length of service, similar to
Walmart's strategy. All of Home Depot's U.S. hourly workers will get
at least a $200 bonus, a spokeswoman told CNBC, and the maximum payout is
$1,000 for workers who've served at least 20 years.
The sliding scale looks like
this, a Home Depot employee said after attending a company meeting regarding
the news:
Less than 2 years: $200 bonus
2 to 4 years: $250 bonus
5 to 9 years: $300 bonus
10 to 14 years: $400 bonus
15 to 19 years: $750 bonus
20+ years: $1,000 bonus
Home Depot declined to comment on these amounts.
Less than 2 years: $200 bonus
2 to 4 years: $250 bonus
5 to 9 years: $300 bonus
10 to 14 years: $400 bonus
15 to 19 years: $750 bonus
20+ years: $1,000 bonus
Home Depot declined to comment on these amounts.
Home
Depot joins a growing
list of corporations, and many retailers, using new tax
benefits to invest in their workers.
"This
incremental investment in our associates was made possible by the new tax
reform bill," Chief Executive Officer Craig Menear said in prepared
remarks. "We are pleased to be able to provide this additional
reward to our associates."
The
home improvement retailer said the new tax law will result in added tax
expenses of about $150 million in the fourth quarter, which are tied to taxes
on offshore earnings. These expenses and the bonus payments will lower Home
Depot's fiscal 2017 earnings by 19 cents a share, the company said.
For
fiscal 2018, Home Depot is still evaluating the legislation's impact on its
business, but said it should be "beneficial."
"Amid
the changing retail environment," Home Depot said it plans to make more
investments in its stores, workers and the customer shopping experience.
More
companies, and especially retailers, face heightened pressure today to recruit
the best talent as the U.S.
labor market continues to tighten. Bonus payments, wage increases
and other benefits can help incentivize current employees to stick around.
Home
Depot will provide more details on future investments when it reports
fourth-quarter earnings on Feb. 20.
