In the wake of the COVID-19 outbreak, governments globally have requested the public to stay home to curb the virus. Resultantly, there has been a surge in demand for online shopping from consumers who remain stuck at home. Amazon stated on Saturday that it is increasing overtime pay for warehouse workers, according to Reuters.
As per the announcement, hourly workers at Amazon's warehouses will receive double pay after 40 hours of overtime, which is an increase from the current 1.5-times rate, from March 15 to May 9. The official statement reads as follows:
All hourly associates working in the U.S. Ops network will receive double their regular hourly rate for every overtime hour worked in a workweek.This temporary increased overtime pay is effective March 15, 2020 and will continue through May 9. 2020.
Due to the surge in online orders resulting from the pandemic, Amazon announced its plans to recruit 100,000 warehouse and delivery workers in the United States. The e-commerce giant also increased the hourly wage for its workers from $15 to $17 on Monday. The company is offering unlimited unpaid leave to workers who don't feel well and prohibits employees from sitting in close proximity to each other in the lunchroom to restrict contact.
After its first employee tested positive in the U.S., Amazon temporarily closed a warehouse in New York on Thursday. As "non-essential" businesses have been closed in many states and cities in the country, several retailers have limited services to delivery, offering discounts and waiving shipping fees.
As more Americans are being ordered to stay home by the government, there is a rising demand for online retailers and grocery stores. On Thursday, Walmart also stated its plans to hire 150,000 hourly workers in the U.S., announcing $550 million in cash bonuses.