Hundreds of employees in South Dakota will get pay increases this year, and some of the companies say it's because of tax reform. However, not all of you will likely benefit.
As KELOLAND deals with a cold snap, Great Western Bank is getting a lot of hot national attention. The Sioux Falls-based bank is hiking employee pay and giving out bonuses.
"About 88 percent of our employees will be getting some type of impact, whether it be through wage adjustment or a one-time bonus," Head of People and Culture Andy Pederson said.
The bank is boosting its minimum wage to $15 and giving $500 bonuses to nearly 70 percent of employees. Many of those employees live in South Dakota.
"In Sioux Falls alone, we have roughly 400 employees," Pederson said.
Pederson says tax reform made this possible, but just because your company is getting a tax break, doesn't mean you'll get a pay hike.
"The decision about how to spend that money has been transferred from Washington to the corporations actually earning the profits," Augustana University Economist Robert Wright said.
Those corporations could hold onto it as a rainy day fund or give it to owners or shareholders.
"Some might decide to invest in more physical plants, like a new warehouse or branch," Wright said.
However, Pederson hopes more South Dakotans will be able to put more money in the bank.
"I hope some follow suit. I think it's definitely the right thing to do," Pederson said.
Great Western is also going to give grants to twice as many nonprofits this year.
Some of the other companies that are increasing wages or offering bonuses because of tax reform include Walmart, American Airlines, Bank of America and Comcast.
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