America's 20 Largest Low-Wage Employers: Who's Paying Workers the Least in 2026

A new report from the Institute for Policy Studies has identified 20 of the largest corporations in the S&P 500 that are paying their workers poverty-level wages — so low that millions of employees qualify for government assistance programs like Medicaid and SNAP. The report, titled "America's 20 Largest Low-Wage Employers and the Affordability Crisis," shines a spotlight on household names including Amazon, Walmart, Starbucks, and Dollar General, revealing that the average median wage across these 20 firms is just $29,087 per year. For the 6.7 million workers employed by these companies, the numbers tell a story of stagnant pay, soaring executive compensation, and a labor market where some of America's biggest employers are contributing directly to the affordability crisis.

Which 20 Companies Made the "Low-Wage 20" List?

The Institute for Policy Studies analyzed S&P 500 companies and identified the 20 largest employers paying the lowest median wages. The full "Low-Wage 20" list includes:

1. Amazon
2. AutoZone
3. Best Buy
4. Chipotle
5. Costco
6. Darden Restaurants (Olive Garden, LongHorn Steakhouse)
7. Dollar General
8. Dollar Tree
9. FedEx
10. Home Depot
11. Kroger
12. Lowe's
13. MGM Resorts
14. O'Reilly Automotive
15. Ross Stores
16. Starbucks
17. Target
18. TJX Companies (TJ Maxx, Marshalls)
19. Tyson Foods
20. Walmart

These companies span retail, food service, logistics, and hospitality. Together they employ approximately 6.7 million workers in the United States alone. Every single one of them reported 2024 median pay below $59,600 — the income level needed to afford the U.S. average rent for a two-bedroom apartment.

How Low Are the Wages?

The wage data in the report is striking. Median worker wages in 2024 ranged from just $9,602 at Ross Stores to $47,607 at MGM Resorts. The average median wage across all 20 companies came in at $29,087 — a figure that actually represents a 4.6 percent decline from the previous year's $30,474 when adjusted for inflation.

To put these numbers in perspective, 15 of the 20 companies reported median pay below $35,631 per year. That is the income threshold at which a family of three becomes eligible for Medicaid in most states. Even more alarming, 13 of the 20 reported median pay below $33,576 — the eligibility threshold for SNAP food assistance for a family of three.

In other words, the majority of these companies are paying their typical worker so little that a family relying on that income would qualify for government-funded food and healthcare programs. This means taxpayers are effectively subsidizing the labor costs of some of the most profitable corporations in America.

Some of the more notable figures include Starbucks, where median employee pay sat at just $14,674 in 2024. Lowe's reported median pay of $30,606, while Home Depot came in at $35,196. Even companies often praised for their worker-friendly policies, like Costco, made the list because their median pay still falls short of the affordability benchmarks used in the analysis.

What Are CEOs at These Companies Earning?

While workers struggle to cover rent and groceries, CEO compensation at the Low-Wage 20 tells a very different story. The average CEO pay across these 20 firms was approximately $18.6 million per year in 2024. That figure is nearly identical to the $18.9 million average for all S&P 500 CEOs, meaning these low-wage employers are paying their executives just as generously as the rest of corporate America despite paying their workers far less.

The CEO-to-median-worker pay ratio at the Low-Wage 20 averaged a staggering 899 to 1. For comparison, the S&P 500 average ratio is 285 to 1 — already a figure that many economists consider extreme. The Low-Wage 20 companies are more than three times as unequal as the broader corporate landscape.

The most extreme example is Starbucks. CEO Brian Niccol earned $95.8 million in his first year on the job, while the median Starbucks employee earned just $14,674. That translates to a pay ratio of 6,666 to 1 — one of the most lopsided compensation gaps in American corporate history. Chipotle also stood out with a CEO-to-worker pay ratio of 1,148 to 1.

These ratios matter beyond the headlines. Research consistently shows that extreme pay gaps within companies are associated with lower employee morale, higher turnover rates, and reduced productivity. When workers see that their CEO earns in a single day what takes them years to accumulate, it erodes the trust and engagement that businesses depend on.

How Are Stock Buybacks Making the Problem Worse?

One of the most striking findings in the report concerns how these companies allocate their profits. Between 2019 and 2024, the Low-Wage 20 companies spent a combined $260 billion on stock buybacks — a financial maneuver that inflates share prices and primarily benefits executives and shareholders.

In 2024 alone, these 20 firms spent $32.5 billion on buybacks. The Institute for Policy Studies calculated that this single year of buyback spending could have lifted more than one million workers earning the group's average median wage of $29,087 up to the $59,600 income level needed to afford rent on a two-bedroom apartment.

Stock buybacks are not inherently harmful, but they become a labor market issue when companies simultaneously claim they cannot afford to raise wages. For job seekers evaluating potential employers, the gap between buyback spending and worker compensation is a meaningful indicator of how a company values its workforce versus its shareholders.

What Does This Mean for Workers and Job Seekers?

The implications of the Low-Wage 20 report extend far beyond the 6.7 million workers directly employed by these companies. When major employers set low pay standards, it creates downward pressure on wages across entire industries. If Walmart and Amazon — two of the largest private employers in the United States — pay median wages below the poverty threshold for a family of three, smaller competitors in retail and logistics have little incentive to pay more.

For workers currently employed at these companies, the data underscores the importance of understanding your market value. Many of these roles exist in sectors — retail, food service, warehousing, logistics — where skills are transferable and multiple employers are hiring. Workers who research comparable pay across employers and negotiate accordingly can often secure meaningful increases simply by switching companies or roles.

As Metaintro CEO Lacey Kaelani told DHgate, "Frame the conversation based on where you see yourself in a career trajectory, not just at starting salary."

This advice is especially relevant for workers at Low-Wage 20 companies. The data shows that staying in a poverty-wage role year after year leads to compounding financial losses. Even a modest 10 to 15 percent pay increase from a job change can translate to thousands of dollars annually — enough to push a family above the Medicaid eligibility threshold and reduce dependence on public assistance.

The report also highlights a broader trend in the 2026 labor market: workers are increasingly evaluating employers not just on hourly pay but on total compensation, including healthcare benefits, scheduling flexibility, and opportunities for advancement. Companies on the Low-Wage 20 list that fail to improve their compensation packages risk losing talent to competitors who offer better overall value.

How Does This Connect to the Minimum Wage Debate?

The Low-Wage 20 report arrives at a pivotal moment in the ongoing minimum wage conversation. The federal minimum wage has remained at $7.25 per hour since 2009, and while many states and cities have enacted higher minimums, the patchwork of regulations means that millions of workers still earn poverty-level wages depending on where they live.

The report strengthens the argument that voluntary corporate wage increases have not been sufficient. Despite years of public pressure and high-profile announcements about pay raises, the average median wage at these 20 companies actually declined 4.6 percent in real terms from the prior year. This suggests that without structural changes — whether through legislation, collective bargaining, or competitive labor market pressure — the largest low-wage employers will continue to prioritize shareholder returns over worker compensation.

For job seekers, the minimum wage debate has practical implications. Workers in states with higher minimum wages — such as California ($16.50), Washington ($16.66), and New York (up to $16.50 in New York City) — generally have better baseline protections. Understanding how state and local wage laws affect your specific role and location is an important part of evaluating any job offer.

The cost of living crisis in 2026 makes this math more urgent than ever. With average rent for a two-bedroom apartment requiring $59,600 in annual income, workers earning the Low-Wage 20 average of $29,087 face a gap of more than $30,000 per year between what they earn and what they need for basic housing security.

What Should Workers Do Next?

If you work for one of the companies on the Low-Wage 20 list — or in a similar low-wage role — there are concrete steps you can take to improve your financial position in the current labor market.

First, benchmark your pay. Use resources like the Bureau of Labor Statistics Occupational Employment and Wage Statistics to see how your compensation compares to the median for your role and region. Many workers at these companies are unaware that comparable positions at competitors may pay significantly more.

Second, consider the total cost of staying. Low wages do not just affect your current paycheck — they compound over time through reduced retirement savings, lower Social Security benefits, and limited access to employer-sponsored healthcare. The true cost of accepting poverty wages extends decades into the future.

Third, explore sectors with better pay trajectories. Many of the skills used in retail, food service, and logistics — customer service, inventory management, team coordination, and physical stamina — transfer directly to higher-paying industries like healthcare support, skilled trades, and technology operations. Workers who invest in targeted upskilling can often make lateral moves into roles that pay 30 to 50 percent more within the same geographic area.

Finally, leverage the job market. Despite some cooling in certain sectors, the 2026 labor market remains competitive for hourly workers. Employers in healthcare, construction, and renewable energy are actively recruiting, and many offer sign-on bonuses, tuition assistance, and clear advancement pathways that the Low-Wage 20 companies do not.

People Also Asked

Q: What is the "Low-Wage 20" report?

A: The "Low-Wage 20" is a report published by the Institute for Policy Studies that identifies the 20 largest S&P 500 employers paying the lowest median wages. The 2026 edition found that these companies pay an average median wage of $29,087, with most workers earning below the threshold for Medicaid and SNAP eligibility. The report also analyzes CEO compensation, stock buybacks, and the gap between executive and worker pay at these firms.

Q: Which company has the worst CEO-to-worker pay ratio?

A: Starbucks has the most extreme pay ratio on the Low-Wage 20 list. CEO Brian Niccol earned $95.8 million in 2024 while the median Starbucks employee earned $14,674, resulting in a pay ratio of 6,666 to 1. The S&P 500 average CEO-to-worker pay ratio is 285 to 1, making Starbucks more than 23 times as unequal as the typical large corporation.

Q: How can workers at low-wage companies increase their earnings?

A: Workers can start by benchmarking their pay using tools like the Bureau of Labor Statistics wage data to see how their compensation compares to the market. Job switching remains one of the most effective ways to secure a raise, with many workers seeing 10 to 15 percent increases when changing employers. Skills used in retail, food service, and logistics transfer well to higher-paying sectors like healthcare, skilled trades, and technology operations. Platforms like Metaintro can help workers explore new opportunities that match their experience.

Wondering What You Should Earn?

If the Low-Wage 20 report has you questioning whether you are being paid fairly, you are not alone. Millions of workers are underpaid relative to the value they create, and the first step toward better compensation is knowing your worth. Metaintro delivers daily job market insights, salary data, and career opportunities straight to your inbox — so you can make informed decisions about your next move. Sign up today and take control of your earning potential.