Why a company is paying its employees a $70K minimum wage

“Is anyone else freaking out right now?” Dan Price, founder and CEO of a small Seattle company asked after informing his company of a new salary policy. “I’m kind of freaking out.”

Rightfully so, as Price had decided to increase everyone’s salary in his company to $70,000 — even the employees who are low on the corporate ladder, according to The New York Times.

Price, who leads credit card processing company Gravity Payments, got the idea when after he read a research paper stating that for people making less than $70,000 per year, their lives are improved with the extra money.

The Times reported that Price surprised his 120-person staff on Monday that he planned to implement the increase over the next three years for all employees under the mark, including customer service representatives and clerks.

The raise will mean Price’s own salary will be cut from $1 million to $70,000 and almost 80 percent of the companies profit will be used to support the higher salaries.

Price said he didn’t intend to make any political statements, but he wanted to address the issue of inequality with minimum wage workers.

Employee Hayley Vogt, 24, told the Times she was pleased with the news.

“Everyone is talking about this $15 minimum wage in Seattle and it’s nice to work someplace where someone is actually doing something about it and not just talking about it,” she said.

Contact Kristen DeSilva at 702-477-3895 or kdesilva@reviewjournal.com. Find her on Twitter: @kristendesilva