Lowe's joins tax cut bonus club
Lowe's is following Home Depot in giving thousands of its hourly employees a one-time bonus of up to $1,000.
The bonus will be paid in addition to the company's long-standing, store-level bonus program. The company is also expanding maternity and parental leave as well as adoption assistance.
"We are investing in our employees who make a difference every day in the communities where we live and work," said Robert A. Niblock, Lowe's chairman, president and CEO. "Our employees are the foundation of our business, and we are excited to enhance our benefits to better meet their needs and the needs of their families. This is another example of how we will continue to invest in our employee and customer experience as we continue to evaluate the impact of tax reform."
Lowe's will award the one-time cash bonus to eligible full- and part-time hourly employees across all its U.S. facilities including: stores, customer support centers, contact centers and distribution centers.
In addition to the company's comprehensive benefits program, eligible full-time hourly and salaried U.S. employees will qualify to receive:
- Ten weeks of paid maternity leave and two weeks of paid parental leave.
- An adoption assistance benefit to cover up to $5,000 of expenses related to agency, legal and other fees.
- Eligibility to enroll in health benefits sooner, as early as the first of the month following 30 days of service.
These enhancements follow the company's recent hiring announcement to recruit more than 53,000 seasonal associates nationwide to better serve customers and communities.
Lowe's also announced that it currently estimates that the impact of the Tax Cuts and Jobs Act of 2017 will result in additional net tax expense of approximately $75 million in the fourth quarter of fiscal 2017. This charge, coupled with the one-time bonus, is expected to negatively impact the company's 2017 fourth quarter diluted earnings-per-share by approximately $0.14.
For fiscal 2018, Lowe's estimates that the net impact of tax reform on its tax provision and cash taxes paid will be positive. The company will continue to make investments to better meet the needs of customers and its employees. Lowe's will provide fiscal 2018 guidance on its fourth quarter 2017 earnings call scheduled for Feb. 28, 2018.
Lowe's operates more than 2,370 home improvement and hardware stores and employs over 290,000 people.