Gap Ditches the Minimum Wage, Gives Raises to 65,000 Workers

An employee folds clothes at a Gap store in San Francisco on Feb. 28, 2013Photograph by David Paul Morris/Bloomberg
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President Obama has called for a new federal minimum wage of $10.10 an hourBloomberg Terminal. Among those who support the increase: a majority of Americans, sevenBloomberg Terminal Nobel prize-winning economists, and Gap.

The retailer, with about 65,000 minimum-wage workers, joined companies such as Costco, Whole Foods, and In-N-Out Burger in agreeing to raise the bottom of its hourly pay scale above the $7.25 federal minimum. Gap Chief Executive Glenn Murphy announced on Thursday that the company will set its minimum hourly rate for U.S. employees at $9 this year and $10 in 2015.