HarborOne Bank today announced it will accelerate its plan to implement a $15-per-hour minimum wage and will provide a one-time $500 bonus to more than 600 employees of the bank and its mortgage lending subsidiary, Merrimack Mortgage Company, LLC, as a result of federal tax reform legislation.
The minimum wage change officially goes into effect on February 5, 2018, and the one-time bonus in mid-January.
“The immediate outcome of this legislation will be tax savings for HarborOne, which has a direct impact on our bottom line,” said HarborOne Bank CEO James Blake. “It’s only fitting that this financial gain be shared with our employees – who do so much every day to deliver a premier banking experience for our customers.
The legislation – officially named the Tax Cuts and Jobs Act of 2017 – lowers corporate tax rates in banking and other industries across the entire U.S. economy. Congress passed the bill earlier this month and President Trump signed it into law on December 22.
HarborOne Bank made significant progress in fulfilling its growth strategy in 2017 – including the announcement of plans for a new branch in Stoughton, rapid expansion of the Bank’s commercial lending business and continued growth of its mortgage lending portfolio through the wholly owned subsidiary Merrimack Mortgage Company.
The $500 bonuses will be paid to all HarborOne Bank and Merrimack Mortgage employees – with the exception of senior management and bank leadership. Additionally, HarborOne and Merrimack Mortgage will implement a $15 minimum wage effective February 5, 2018.
“This is something we’ve been working on for some time now,” said Joseph Casey, President and Chief Operating Officer of HarborOne. “Our original intent was to implement the higher minimum wage over a three-year period. But this tax reform legislation allows us to accelerate those plans.”
With the announcement and change to be implemented in February, HarborOne Bank’s starting wage will be more than double the federal minimum wage and 36 percent higher than the Massachusetts state minimum wage of $11 per hour.
“This is some great news to close out the year,” Casey said. “HarborOne is fortunate that our employees are so dedicated to customers, community, and each other. We wouldn’t have the success that we’ve had, or the prospects for success that lie ahead of us, without them.”