Tesla hiked pay for factory workers across the U.S. last month.
Internal documents viewed by Business Insider disclose how much the factory workers now make.
Under the new pay guidelines that were announced in December and implemented on January 8, factory workers at Tesla make from $22 to $39 an hour, according to the documents.
The company has split up the pay tiers into three regions based on the cost of living in each area, with Tesla’s factories in Austin, Texas, and Sparks, Nevada, receiving the lowest pay, and the company’s sites in Fremont and Palo Alto, California, receiving the highest pay. The broader minimum wages in some of the regions follow a similar trend, with workers in California receiving a state-mandated minimum wage of $16 an hour, while Nevada and Texas have minimum wages of $10.25 and $7.25 an hour, respectively.
Tesla divides its factory workers into seven levels, while leads are divided into two levels. For example, Level 1 workers at the Fremont factory receive $25.25 an hour under the new compensation structure, and Level 7 workers are paid $35.50. Meanwhile, Level 1 workers in the lowest-paying regions are eligible for $22 an hour.
For comparison, the average auto worker made about $28 an hour last year, according to the U.S. Bureau of Labor Statistics. Under the United Auto Workers’ new contract, the highest-paid autoworkers are set to make more than $40 an hour by the end of the contract in 2027.
Tesla base hourly pay in the US
Workers can be eligible to move between levels every six months based on their performance as well as Tesla’s overall results, according to the document.
Workers are also eligible for a bonus every six months at the end of performance periods that go from January through June and July through December. Tesla’s bonus system is named Cyber Wallet, and bonuses are determined by employee performance as well as Tesla’s results, the document shows. It’s unclear what the document means by “results.”
The carmaker uses a five-point system for its twice-yearly performance reviews, multiple workers said. In Tesla’s reviews, workers who are given a one or two rating are considered to be underperforming and don’t receive points toward a bonus, the workers told BI. A three rating is considered meeting expectations and is eligible for a bonus, while a four or five rating means the individual has exceeded expectations and is eligible for an even higher bonus, according to the workers.
The Cyber Wallet bonuses can be used toward 20 hours of paid time off at the employee’s current hourly rate, a long-term cash reward, or restricted stock units and stock options, according to Tesla’s internal document on compensation.
A spokesperson for Tesla didn’t respond to a request for comment ahead of publication.
Tesla employs more than 140,000 people, the majority of whom are based in the U.S. The carmaker told staff in January that it was giving production associates and leads a “market adjustment pay increase,” according to flyers at Tesla’s factories that were first reported on by Bloomberg.
The electric car maker is one of several to hike wages in recent months. Toyota and Hyundai have also increased pay at U.S. factories in the wake of the United Auto Workers’ historic contract.
Tesla is also facing pressure from union efforts. The UAW’s president, Shawn Fain, has said he has Tesla in his sights, and Bloomberg reported that employees at Tesla’s Fremont Factory had already formed a UAW organizing committee.
The effort won’t be without its challenges, as Tesla CEO Elon Musk has voiced confidence that a union isn’t necessary, and some Tesla workers previously told BI they’d be hard-pressed to join a union.
This article originally appeared on Business Insider.
This story originally appeared on Entrepreneur
