Workspan Daily News Bytes for March 14, 2025

Costco Raises Average Wage to $31

Costco implemented a new employee agreement this week that raised wages and added paid vacation for certain employees.

The agreement increased the membership company’s minimum wage to $20 per hour and its average wage to more than $31 an hour in the U.S. and Canada, according to a RetailBrew report.

The agreement also includes an immediate $1 pay increase, followed by additional dollar increases in March 2026 and 2027. Additionally, first-year employees will now have access to paid vacation, and 30-year employees can take up to six weeks off.

“[The agreement] reflects our continued commitment to provide industry-leading pay and benefits for our employees,” Costco CEO Ron Vachris told investors.

Survey: Employers Remain Committed to DEI

Despite President Donald Trump’s executive order to terminate diversity, equity and inclusion (DEI) policies and programs within government and private-sector employers, most businesses have not rolled back their DEI initiatives and commitments.

According to the “2025 Inclusion, Equity, and Diversity (IE&D) C-Suite Survey Report” produced by employment law firm Littler, nearly half (49%) of polled C-suite leaders are not considering new or further rollbacks of their IE&D programs, and only 8% are seriously considering changes.

(The report includes findings from two surveys, both of nearly 350 C-suite executives across the U.S., that were conducted before and after the President’s inauguration.)

Other key findings from the survey include:

53% of C-suite leaders surveyed after the inauguration say the Trump administration’s anti-IE&D policies and/or rhetoric are likely to decrease corporate commitments in 2025.
47% of executives are expecting to see commitments remain the same or even grow as IE&D becomes increasingly polarized.
60% say their organizations are awaiting further developments on the new administration’s IE&D priorities, including enforcement plans, before making any changes.
55% say they are more worried post-inauguration about the risk of IE&D-related lawsuits, government enforcement actions and shareholder proposals.
22% of executives surveyed after the inauguration are currently considering reducing or eliminating IE&D-focused roles.
38% say they are contemplating ending incentives or manager evaluation criteria tied to advancing IE&D priorities.

California Bill Targets Use of AI to HR Decisions

A California state senator has introduced the “No Robo Bosses Act” — legislation that would bar employers from using artificial intelligence (AI) systems to make a range of HR/total rewards decisions (such as those on hiring, promotion, discipline or termination) without human oversight.

According to Jerry McNerney, a Democrat representing Pleasanton, Calif., his legislation would prohibit the use of automated decision-making systems (ADS) to make personnel moves via analyzing workers’ past actions and/or predicting what they will do in the future.

“Businesses are increasingly using AI to boost efficiency and productivity in the workplace. But there are currently no safeguards to prevent machines from unjustly or illegally impacting workers’ livelihoods and working conditions,” McNerney said. “[Senate Bill 7] does not prohibit ADS in the workplace; rather, it establishes guardrails to ensure that California businesses are not operated by robo bosses — by putting a human in the loop. AI must remain a tool controlled by humans, not the other way around.”

Michigan Makes Changes to Minimum Wage, Tip Credit Amounts

The Michigan legislature recently approved Senate Bill 8 to amend the state’s minimum wage and tip credit amounts within the Improved Workforce Opportunity Wage Act. The bill was signed into law by Gov. Gretchen Whitmer.

The primary changes brought about by the amendments include a:

Faster increase to a $15 minimum wage (which now will take effect by 2027 instead of 2028); and,
Slower increase in the minimum cash wage for tipped employees, which will reach 50% of the general minimum wage by 2031 (vs. the previous plan of reaching 100% of the minimum wage by 2030).

For the latter bullet point, this means the state’s tip credit no longer will be phased out completely by 2030 but instead will be pulled back to 50% of the minimum wage.

Editor’s Note: Additional Content

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