TJX believes so strongly in the value of its employees that it’s going to abide by the new overtime rules set to go into effect Dec. 1 — even though a Texas federal court blocked the law last week.
Read more: The voters speak: Raise the minimum wage!
Putting its money where its mouth is
Under The Fair Labor Standards Act overtime rule, most salaried workers who earn up to $47,476 would be eligible for overtime pay. The previous cap was just about half of that at $23,660.
Now that the Obama rule has been blocked temporarily, the court must still make a final decision whether or not to shut it down permanently.
“At TJX, we attribute our success primarily to the people we have hired over many years who remain focused on our mission of delivering amazing values to consumers,” spokeswoman Doreen Thompson told the Boston Business Journal. “With this in mind, TJX will move forward as planned in implementing the changes outlined in Department of Labor’s new rules.”
A case of enlightened self-interest
TJX’s actions in the absence of any government directive speak volumes about enlightened self-interest, what Clark calls ‘the best form of capitalism.’
Companies that willingly pay higher wages — like Costco and others — ultimately become more profitable.
The idea is so simple. By offering something more than the minimum wage, employers get employees who are more loyal, better trained and are more likely to stay with them for the long haul.
‘It’s the thing I’ve long talked about — the idea of romancing your employees so they romance your customers,’ the consumer champ says.
Of course, some businesses choose to go the other way and have enormous turnover. And we’ve all been to those places where it seems like you never see the same face twice. Just look around the store and you’ll know immediately; it’s disheveled and dirty. Then look at the bathrooms. If they’re dirty, that says a lot about how they treat their employees!
So kudos to TJX for doing something it didn’t have to do. And don’t forget to check out our 11 money-saving secrets to know about T.J. Maxx and Marshalls.