Target agreed to pay $10 mln to settle a class action lawsuit over the breach. Separately, it'll hike the minimum wage for workers to $9 an hour. Fred Katayama reports.
Target making moves to placate two key stakeholders: its customers and workers. The upscale discount retailer agreed to pay $10 million to settle a class action lawsuit over its massive data breach. That breach involving over 40 million credit cards two years ago resulted in the theft of personal information of as many as 110 million people. The proposed settlement would pay individual victims as much as $10,000 in damages. And it would require Target to appoint a chief information security officer and maintain a written information security program. A court hearing on the proposal is set for Thursday, according to CBS. Target also made a move to strengthen its workforce and boost productivity. It'll hike its minimum wage for all workers to $9 an hour. That matches moves made by Wal-Mart last month, which was quickly followed by T.J. Maxx and Marshalls. It's not clear how many of its 346,000 workers would get a boost in pay. Stifel, Nicolaus analyst David Schick doesn't think the wage hike will have a big impact on Target's financial picture, noting that the cost of raising wages at Wal-Mart is just 0.3 percent of US sales. He said, "Minimum wage employees at Target likely represent a smaller portion of total sales." With the jobless rate at its lowest in over six years, Target's move reflects the increased competition for workers and the tightening of the labor market.