Dan Price Proves Critics Wrong: Gravity Payments’ $70K Minimum Wage Policy Yields Significant Success

Dan Price, the CEO of Gravity Payments, has once again made headlines for his innovative and controversial decision to implement a $70,000 minimum wage for all employees at his company. This move, which was initiated in 2015, was met with skepticism and criticism from various quarters, including Fox News and other conservative outlets.

The idea for the minimum wage hike came to Price during a hiking trip in the Cascade Mountains, where he learned about the financial struggles of one of his employees. Despite his own significant salary of $1.1 million, Price felt compelled to address the financial hardships faced by his staff. He researched the amount needed for a comfortable living and decided to set the minimum salary at $70,000, also reducing his own salary to this amount.

Six years after the policy was implemented, the results are starkly contrary to the dire predictions made by critics. Price recently shared on Twitter that since the minimum wage was raised, Gravity Payments’ revenue has tripled, the company’s headcount has grown by 70%, and the customer base has doubled. Additionally, the number of homes bought by employees has increased tenfold, and 401(k) contributions have risen by 155%. The company has also expanded to a second office in Boise, Idaho.

The benefits of this policy were particularly evident during the pandemic, when the company faced a 55% revenue hit. Instead of laying off employees, Price held a call explaining the situation and nearly every employee volunteered for a temporary pay cut to help the company. This loyalty and support have been repaid, and the company is now giving out raises.

Price’s approach has been hailed as a model for other companies, highlighting the importance of investing in employees. He argues that the significant disparity between CEO and average worker salaries is unsustainable and that paying employees well can lead to substantial benefits for the company.