Seattle CEO to cut his pay so every worker earns $70,000

SEATTLE (AP) — For some companies, Seattle's new $15 minimum wage law isn't doing enough to help workers.

The CEO of Gravity Payments, a Seattle-based company that processes credit-card payments, told his employees this week that he was taking a pay cut so they would earn a base salary of $70,000, to be phased in over three years.

Dan Price's announcement surprised everyone at a company meeting, Seattle television station KING reported. He says his pay cut is worth it to make the company's more than 100 employees happy and to build loyalty.

"I think this is just what everyone deserves," Price told workers.

Earlier this month, Seattle's minimum wage law went into effect, which will eventually raise base hourly pay to $15. It's phased in more quickly for big companies than small ones: Large businesses and national chains had to raise their minimum wage to at least $11 an hour when the law took effect April 1, while smaller businesses now must pay at least $10.

Washington state already has the nation's highest minimum wage at $9.47 an hour.