Tax cut leads Massachusetts bank mortgage lender to raise pay
Employees at HarborOne Bank and its Merrimack Mortgage Co. subsidiary will see their minimum wage rise to $15 per hour, the latest company to accelerate plans to hike salaries.
In addition, employees will receive a one-time $500 bonus as a result of the Tax Cuts and Jobs Act 2017.
"The immediate outcome of this legislation will be tax savings for HarborOne, which has a direct impact on our bottom line," said the CEO of the Brockton, Mass.-based company James Blake in a press release. "It's only fitting that this financial gain be shared with our employees — who do so much every day to deliver a premier banking experience for our customers."
HarborOne joins a growing list of institutions, including Wells Fargo, Fifth Third Bancorp, Bank of America, PNC Financial Services Group, Associated Banc-Corp, Texas Capital Bank and Pinnacle Bancorp, which are offering bonuses to their employees because of the savings from the tax reform bill.
The companywide (except for senior management and bank leadership) pay raise goes into effect on Feb. 5.
"This is something we've been working on for some time now," said HarborOne's President and Chief Operating Officer Joseph Casey. "Our original intent was to implement the higher minimum wage over a three-year period. But this tax reform legislation allows us to accelerate those plans."
With this change, HarborOne's starting wage will be more than double the federal minimum wage and 36% higher than the Massachusetts state minimum wage of $11 per hour.
Other banks that announced employee pay raises because of the tax cut were Washington Federal, Florida Community Bank, FirstCapital Bank of Texas and Western Alliance Bancorp.