Seattle company to set new ‘minimum wage’ — $70,000 a year

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SEATTLE -- Dan Price, the founder of credit card processor Gravity Payments, told his 120-person staff on Monday he will raise the salary of all employees over the next three years to a minimum of $70,000, according to a report from the New York Times.

Price said he will pay for the increases by cutting his own salary from nearly $1 million to $70,000 and using up to 80 percent of the company's anticipated 2015 profit of $2.2 million.

Price, who started the company in 2004 when he was 19, said he recently read an article that suggested extra money makes a big difference in the happiness of people who make less than $70,000. The idea turned into reality on Monday when he made the announcement to his employees.

The current average salary at the company is $48,000. At least 30 employees will double their salary.

Read more from the New York Times.

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  • Jim Rush

    It is great that he wants to share the wealth. I worked for a wealthy saw mill owner in my younger days, he took a wage from the mill that was the same as the top paid mill worker. The profits the mill made gave him enough money to invest in other areas that also created more jobs and a huge income stream for him so he did not need a large wage from the mill.

    I’m fairly certain Dan Price could not have done this when he was starting the business. Also many new small businesses just like his fail and the owner takes all the losses when it fails not the employees, they just have to find a new job. But it is cool to see owners once they have made it share with those who helped the company to be profitable.

    • ken

      publicity is all this is. I checked this place out they don’t not have the revenue to do this without loosening money. FYI hes a big time liberal and supporter of Clinton. So i will bet you that hes doing this to help Clinton but never plans on doing so. Plus the fact that it is in Seattle so 40k a year is only 20k in spending ability.

  • AJ

    This is AMAZING!! Imagine if Wal-mart raised the minimum waige of it’s employees to $20. There is so much profit in that company, they wouldn’t have to hike up prices or do anything…the Billionaires at the top would just have to sacrifice a little bit of their riches. Spread the wealth. All those people would come off of government help and imagine the impact. This guy is my hero!!

  • Bobby

    How about we stop talking about Walmart. NURSES here start at $18-$22/hour, Walmart should not be on the same pay grade.

  • Brian Sparks

    I work at a fast food joint and am sick and tired of working my butt off for so little money, Hmmm…. I got it, I’ll apply for a job at this company, yeah, that’s it!
    Then again, it’s hard to write a good resume and I would have to miss an episode of Survivor to make time to write up my resume. Thinking about a new job is scary. Too much change for me. Never mind.

  • Jane

    Fantastic! A privately held company that chooses to pay very well is great and a WHOLE lot different than mandating the company to pay a certain level. This company will be besieged with people wanting to work for them. That is a bonus of the free-market system. Legislate that the company must pay a certain amount and you’ll get unmotivated, expectant workers.

  • bruce

    Such a great idea….until the company goes out of business due to much higher overhead than it’s competitors and everyone loses their job. Idiots.

  • Alex Colvin

    Sounds like a publicity stunt, tailgating on a national sensitivity to low-wage work conditions. I guess when you don’t have a superior product or good marketing game, that only leaves propaganda.

  • I. Gotchya

    Ya people are primarily happier with 70k, but they will soon out grow that sum and feel they need more and when it’s not there they will be back to square one.

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