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Seattle company to set new ‘minimum wage’ — $70,000 a year

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Credit: Gravity Payments

SEATTLE — Dan Price, the founder of credit card processor Gravity Payments, told his 120-person staff on Monday he will raise the salary of all employees over the next three years to a minimum of $70,000, according to a report from the New York Times.

Price said he will pay for the increases by cutting his own salary from nearly $1 million to $70,000 and using up to 80 percent of the company’s anticipated 2015 profit of $2.2 million.

Price, who started the company in 2004 when he was 19, said he recently read an article that suggested extra money makes a big difference in the happiness of people who make less than $70,000. The idea turned into reality on Monday when he made the announcement to his employees.

The current average salary at the company is $48,000. At least 30 employees will double their salary.

Read more from the New York Times.