Lowe’s is giving more than 260,000 hourly employees a one-time bonus of up to $1,000 due to new tax legislation.
The payouts are determined on a sliding scale based on a worker’s length of service, Lowe’s said. Full-time employees will receive more than part-time workers.
Here’s what that sliding scale looks like, a source told CNBC. Lowe’s declined to comment on these amounts.
The bonuses will be paid later this month, Lowe’s told its employees earlier this week.
The North Carolina-headquartered company also said it expects to book additional net tax expenses of roughly $75 million in the fourth quarter of fiscal 2017 due to the Tax Cuts and Jobs Act. This charge, coupled with the bonus payouts, is expected to reduce fourth-quarter earnings by about 14 cents a share, Lowe’s said.
Lowe’s said it will provide more details on other investments from tax savings in the coming weeks. Lowe’s is set to report fourth-quarter earnings on Feb. 28.