Hard Rock CEO makes $100M employee wage investment: We wanted to 'really thank them'
Hard Rock, Seminole Gaming invest $100 million to raise US starting wages to ease inflation tension
Hard Rock CEO on $100M employee wage investment: We wanted to 'really thank them'
Hard Rock CEO Jim Allen says the company's wage raises weren't given to management or executive positions.
Hard Rock International Chairman Jim Allen joined "Cavuto: Coast to Coast" Friday to reveal why the hotel and casino conglomerate is giving a very generous – and expensive – gesture to its U.S. employees amid decades-high inflation.
"There is definitely tension in the labor force," Allen told FOX Business’ Neil Cavuto. "But when we looked at the hourly rates and the cost of living and all the additional expenditures that they are incurring, I just felt compelled to really thank them and really show them that we care about them as individuals."
Reporting that the Hard Rock brand "has been doing very well this year," Allen announced an initiative Tuesday to thank the company’s line employees with a $100 million investment to raise starting wages for half of its U.S. workforce at company-managed hotel, café and casino locations nationwide.
The new starting wages will range between $18 and $21 an hour – more than 2.5 times the federal minimum wage and exceeding each U.S. state minimum wage – with minimal exceptions. On average, most eligible employees will see a 40% increase in their starting wage, while some employees will see increases of over 60%.
HARD ROCK, SEMINOLE GAMING INVESTING $100M TO RAISE U.S. EMPLOYEE STARTING WAGES
Hard Rock International Chairman and Seminole Gaming CEO Jim Allen says he wanted to "really thank" employees for their work amid rising everyday costs on "Cavuto: Coast to Coast" Friday, September 16, 2022. (Getty Images)
Allen, also the Seminole Gaming CEO, claimed the wage increases will be seen across almost 100 different job classifications.
"I think it's important to note that these raises were not given to management. They were not given to exempt employees. It was all line employees," the CEO said.
Looking ahead, Hard Rock and Seminole Gaming are focused on longevity and retaining the "highest caliber" employees, Allen previously told FOX Business. There are currently more than 1,600 job openings at the new starting wage rates at Hard Rock locations nationwide.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Inflation cause for 'concern' as travel-related costs soar: Hard Rock International chairman
Jim Allen, chairman of Hard Rock International, provides a sneak peek into the New York City hotel located near Times Square ahead of its grand opening.
And despite the pandemic disrupting the hotel and travel landscape, Allen said the company is performing "extremely well" to provide some inflation relief.
"We probably have another 35, 40 hotels under contract expanding as we speak, another 90 plus deals in the pipeline," Allen detailed. "The integrated resorts, obviously, that's where a lot of our profit comes from."
FOX Business’ Lucas Manfredi contributed to this report.