Tags: gravity payments | 70000 | minimum wage

Gravity Payments: $70,000 Is Seattle Company's New Minimum Wage

By Jonna Lorenz   |   Tuesday, 14 Apr 2015 06:36 PM

Dan Price, founder of Gravity Payments, announced Monday that $70,000 will be the new minimum salary for each of his 120-person staff at his Seattle-based company.

The average salary at the credit card payment processing company is currently $48,000, and Price plans to pay for the wage increases by cutting his $1 million salary to $70,000 and using Gravity Payments' expected $2.2 million profit this year, The New York Times reported.

“The market rate for me as a CEO compared to a regular person is ridiculous, it’s absurd,” Price said, according to The New York Times. “As much as I’m a capitalist, there is nothing in the market that is making me do it.”

Price, who started the business in his dorm room in 2004, came up with the idea for a $70,000 minimum salary after reading an article on happiness based on research by Angus Deaton and Daniel Kahneman. They found that life satisfaction raises with income, but only up to a point: $75,000 a year.

“My jaw just dropped,” employee Phillip Akhavan said, according to the Times. “This is going to make a difference to everyone around me.”

Gravity Payments' $70,000 minimum wage will be enacted over the next three years.

Seattle is at the forefront of the a nationwide minimum wage debate, phasing in a $15 per hour minimum wage over the next few years.

“There’s greater inequality today than there’s been since the Great Recession,” Price told The Huffington Post. “I’d been thinking about this stuff and just thought, ‘It’s time. I can’t go another day without doing something about this.’”

CEOs in the United States earn more than 350 times that of the average worker, The Huffington Post noted.

Twitter users seemed impressed.









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Dan Price, founder of Gravity Payments, announced Monday that $70,000 will be the new minimum salary for each of his 120-person staff at his Seattle-based company.
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