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Sept. 9 — Nationwide Mutual Insurance Co., the third-largest seller of commercial auto coverage in the U.S., announced Sept. 9 it is lifting its minimum wage to more than double the federal requirement to improve employee retention.
The change to $15 an hour will come over the next nine months and will aid 900 employees, including staff in call centers and field offices, Columbus, Ohio-based Nationwide said in a statement. That compares with the federal minimum wage of $7.25 an hour.
Nationwide, which is owned by its policyholders, is going beyond employers including Wal-Mart Stores Inc. and McDonald's Corp. that have said they plan to boost wages to attract employees and reduce turnover.
Wal-Mart announced plans in February to raise wages for its hourly U.S. workers to at least $9 an hour this year and $10 by 2016, while McDonald's announced in April that it will raise pay at company-owned locations to at least $1 more than the local minimum wage.
The insurer's move “aligns with our values and reflects a change that is above the current market practice for certain roles,” Gale King, chief administrative officer for Nationwide, said in the statement. “This change will have a significant and positive impact on our business and our associates.”
Nationwide said it has hundreds of open jobs across the U.S.
For more information, see Compensation and Benefits Library’s Fair Labor Standards Act: General Principles chapter.
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