Gap Raising Minimum Wage For U.S. Employees

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In this May 14, 2012 file photo, shoppers walk by the GAP store at a shopping mall in Peabody, Mass. Doris Fisher and her late husband Donald founded the Gap in San Francisco in 1969. Gap Inc. has grown to include Banana Republic and Old Navy brands, among others, and operates over 3,000 stores across the world. Fisher is 42nd on Forbes's 2012 400 list. (AP Photo/Elise Amendola. File) | ASSOCIATED PRESS

NEW YORK (AP) — Clothing chain Gap says it will raise the minimum hourly wage for its U.S. employees to $10 in 2015.

The San Francisco company said Wednesday that the minimum wage for workers at all of its brands will be raised to $9 an hour in 2014 and $10 an hour in 2015. Gap said the increases will affect about 65,000 store employees.

Gap Inc.'s stores include Gap, Banana Republic and Old Navy.

President Barack Obama applauded the move by Gap, noting that in his State of the Union address last month, he had asked businesses to do what they can to raise wages. Obama has also signed an executive order raising the minimum wage for workers covered by new federal contracts to $10.10.

But Obama said only Congress can act raise wages nationwide, urging the House and Senate to take up a bill that Democrats are pushing.

"It's time to pass that bill and give America a raise," Obama said in a statement.

Gap shares fell 4 cents to $42.19 on Wednesday.

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