Minimum Wage Case Study

Companies: Should the minimum salary be increased In April,2015, Gravity Payments ‘s CEO Dan Price planned to increase minimum salary of all the employees. And he planned to increase the minimum salary to $70,000. But people have many different views and ideas on his plan. On the one hand, his employees seemed they have been motivated, and cheered for Dan Price’s decision, because it is a challenge to long-formed American income inequality. On the other hand, there were so many people question to his this act, the managers of other companies specially. Is it reasonable to increase the minimum salary ? Will the improvement of minimum salary bring motivation and joy to employees? What effects of minimum salary increase to management? With these speculations, this topic becomes an intriguing argument. But we have to understand a premise

In 2015, U.S minimum wage is $7.25 per hour, and the minimum wage of Massachusetts is $11.00, while according to the survey, approximately 295,800 Massachusetts workers or 8.9 percent of the work force earned the minimum wage or less, and one out of eight working adults over 65 made $4.25 an hour or less. {{20 Pham, Alex 1994;}} What the meaning of these data? That means a part of employees in Massachusetts do not have enough capital to increase their future earning capacity. Their current earnings cannot afford the training of the work skills, or the requirement of self-development. So these people cannot maximize their efficiency to companies or society. Moreover, for companies, the position paid near the minimum wage may not attractive to high-educated employees. No companies want their own employees’ personal ability below competitor companies. Concluded, increasing the minimum wage not only improving the development opportunity for employees, but also the