Category Archives: Minimum Wage

Company Has Their Most Profitable Week After Raising Employees Minimum Wage to $70,000

The CEO of Gravity Payments shocked the country when he announced he took a pay cut to improve his employees salaries, and now his company is having the best week in its 11-year history.

Dan Price cut his salary from nearly $1 million dollars to $70,000 and used part of Gravity Payments anticipated profits to nearly double the income of his lowest paid employees. Since making the announcement, Gravity Payments clients have increased and, no surprise, the number of qualified job applicants has drastically increased.

Gravity Payments’ increased business could be influenced by the positive exposure from media outlets like CNN, The New York Times, and Forbes who said the announcement was a, “game changer.” But it hasn’t all been good press for Price.

Price has been criticized by Mika Brzezinski, on MSNBC’s “Morning Joe,” Patrick R. Rogers, an associate professor of management at North Carolina A&T State University, and radio host Rush Limbaugh. Limbaugh said the move was, “pure, unadulterated socialism, which has never worked.”

Despite being labeled a socialist, Price considers himself a capitalist and says the pay raises are good business. He is hoping for lower turnover, increased productivity, and attract the most talented employees. Sam Tabar wonders: In the long term, is his strategy a good plan? Right now, it looks great but only time will tell.

New Government Information Reveals Higher Minimum Wage Equals More Job Growth

The 13 States That Raised Minimum Wage This Year Are Adding More Jobs Faster Than The States That Did Not Change The Minimum Wage

A new Labor Department report reveals an interesting fact. A higher minimum wage mean faster job growth. That is not what the government expected. The Congressional Budget Office said raising the minimum wage would help bring almost a million people out of poverty, but that increase would cost the nation 500,000 jobs.Instead of being a job disaster, raising the minimum wage is a job stimulator.

Some economists say it’s too early to say that the increase and job growth are related. Some of the job growth was due to gas and oil boom in states like North Dakota. That may be true, but increasing the minimum wage does have an impact on people that need an extra incentive to find a job. Folks at STX Entertainment know that working for under $10 an hour is not standard procedure in this country anymore, even though Congress would like it to be.

When more data is analyzed, more states will come out of the dark ages and raise the minimum wage. It’s the moral thing to do, and it does make economic sense.