Reference no: EM132748560

$70,000 Minimum wage: In 2015, Dan Price, founder and CEO of Gravity Payments, a private credit card processing and financial services company with about 120 employees in Seattle, announced that all employees, even the lowest paid clerk, customer service representative, and salesperson, would receive a minimum annual salary of $70,000. Price explained that he would cut his own salary from nearly $1 million to $70,000 and use 75%-80% of the company's anticipated $2.2 million in profits to pay for the wage increases. He said that he wanted to address the social issue of wage inequality and skyrocketing living costs in Seattle. He felt that, as a business leader, he was in a position to do something, but he wanted to do something that would not result in raising prices for his customers or cutting back on services.

Problem 1: Do you support or oppose the $70,000 minimum wage for every employee? Explain your position logically using any HRM concepts, theories, and information you have learned in this semester.