Home Depot is giving its hourly employees in the U.S. a one-time cash bonus of up to $1,000 after the passage of new tax legislation.
The Atlanta-based home improvement retailer joins a growing list of corporations, including Starbucks and Disney, using new tax benefits to give workers bonuses and raise pay.
Home Depot's bonus amounts will be determined based on a person's length of service, similar to Walmart's strategy.
The sliding scale looks like this, a Home Depot employee said after attending a company meeting regarding the news:
Less than two years: $200 bonus
Two to four years: $250 bonus
Five to nine years: $300 bonus
10 to 14 years: $400 bonus
15 to 19 years: $750 bonus
20+ years: $1,000 bonus
Home Depot declined to comment on these amounts.
The retailer also said the new tax law will result in added tax expenses of about $150 million (related to offshore earnings) in the fourth quarter. These expenses and the bonus payments will lower Home Depot's fiscal 2017 earnings by 19 cents a share, the company said.
Looking to fiscal 2018, Home Depot said it plans to invest further in its employees, stores and digital initiatives.
Home Depot will provide more details on any other impacts from new tax legislation when it reports fourth-quarter earnings on Feb. 20.