This week, Amazon executives announced $15 minimum wage for all USA workers, including workers with full-time and part-time hours and those who are temporary workers and working in seasonal positions.
Amazon's average wages at its fulfillment centres is US$13 an hour.
Amazon on Tuesday announced plans to raise the company's minimum wage in the U.S. to $15.
Amazon is encouraging other large U.S. employers to follow its lead and said it would lobby lawmakers for an increase in the federal minimum wage, now at only $7.25.
A higher federal minimum wage could intensify pressures on smaller businesses that don't have the financial resources that Amazon has to raise pay significantly.
"This will lead to a general increase in minimal wages in all industries", he said. Last month it became the country's second publicly traded company to be valued at more than $1 trillion.
Amazon has faced criticism from labor rights groups and others over pay and working conditions at its warehouses.
Like several of the big USA tech firms, Amazon is also facing increased official scrutiny over how much tax it pays.
Detailed information on Seattle's minimum wage increases also may be found on their website.
Juliette Tennert, director of economic and public policy research at the University of Utah's Kem C. Gardner Policy Institute, said the wage change bodes well both for individual Utah Amazon employees and the state's economy.
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Bezos makes more than $4 million an hour. One of its harshest critics is Vermont Sen. Amazon, with about 100 warehouses around the country, will soon need to hire more than 100,000 workers to pack and ship boxes during the holiday season.
"What Mr. Bezos has done today is not only enormously important for Amazon's hundreds of thousands of employees, it could very well be. a shot heard around the world", Sanders said.
It will have repercussions beyond retailers and will put pressure on any company that operates a distribution center, said Gerald Storch of the retail consulting firm Storch Advisors.
Current pay for warehouse workers at Amazon is at least $12.25 an hour in Omaha, Nebraska, $13 in Baltimore and $16.50 in NY, according to recent job postings.
Jeff Bezos on Tuesday announced plans to raise Amazon's minimum wage to $15 an hour. "They are in a very tough place".
Indeed, shares of retail companies fell sharply Tuesday in a sign that investors expect them to have to raise pay to compete with Amazon, a step that would potentially slow their profits.
The last hiring figures from the U.S. Commerce Department showed that in August, the pace of hiring rose again and wages grew at their fastest pace in nine years. The pay increases would apply to about 100,000 Amazon seasonal workers.
Other companies also have moved to raise wages, particularly in this tight labor market.
"They'll gladly cross the street and take a better-paying job", said Marc Wulfraat, president of MWPVL, a supply chain consulting company. Analysts said the raise would cost it $US1 billion or less annually but would be offset by a recent $US20 increase in the cost of its Prime memberships. It's worth noting that many states have their own minimum wages that are set higher than the Federal minimum, and that this is likely a big driver in the variation among the states. With a healthy USA economy, Americans looking for work have an increasing number of job options, so Amazon has to find ways to entice people to join its company.
But "we're sure $7.25 is too low", Carney said.