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California is about to raise minimum wage. These Merced retailers already have higher pay

California’s new minimum wage goes into effect in just over a month. But some retailers in the Merced-area are already offering a higher starting pay.

The national average wage for cashiers is $13.81 or $28,730 annually, according to 2022 data from the Bureau of Labor Statistics.

In California, the hourly average wage for cashiers was $16.81. The state has the most people working as cashiers at 390,590.

The current minimum wage in California is $15.50. That will increase to $16 on Jan. 1, according to the state’s Department of Industrial Relations. Some counties and cities have higher requirements. The minimum wage for fast food workers will rise to $20 an hour in 2024.

Some companies also pay more than the state requires. Costco, for example, raised its minimum wage to $17 an hour in 2021, CNN and Business Insider reported.

If you work a 40-hour week, the $15.50 minimum comes out to roughly $31,200. That’s lower than what MIT Living Wage Calculator estimates an individual would need to meet basic needs, such as child care, housing and food. A living wage for one adult without children in California would be $21.24.

Here’s how much some of the state’s largest retailers pay their employees:

Retailer wages in Merced

Target: In 2022, Target increased its starting wage range. It’s now $15 to $24. A cashier role in Merced starts at $16.25 an hour.

Walmart: The average hourly pay for frontline associates at Walmart is more than $17.50, the company posted on its site. A Walmart cashier could earn between $16 to $26 in Merced.

The Home Depot: The home improvement company announced in February it was increasing the starting pay to or above $15 an hour across the U.S. In California, where the minimum wage is higher, employees earn more. A cashier at The Home Depot in Merced could earn between $18.50 to $19.50 an hour.

Lowe’s Home Improvement: The pay range for a loader/cart associate at Lowe’s is between $15.50 to $18.60 an hour, according to a Fresno job posting.

Kohl’s: A seasonal retail sales associate at Kohl’s could earn between $15.50 and $22.40 an hour in Merced.

JCPenney: A cashier at JcPenney in Merced could earn $15.50 to $23.25 hourly.

TJ Maxx: A retail merchandise associate at TJ Maxx in Turlock could earn between $15.50 and $16 an hour.

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This story was originally published November 30, 2023 at 5:00 AM with the headline "California is about to raise minimum wage. These Merced retailers already have higher pay."

Cortlynn Stark
The Kansas City Star
Cortlynn Stark writes about finance and the economy for The Sum. She is a Certified Financial Education Instructor℠ with the National Financial Educators Council. She previously covered City Hall for The Kansas City Star and joined The Star in January 2020 as a breaking news reporter. Cortlynn studied journalism and Spanish at Missouri State University.
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