Just a reminder that even small businesses can be predatory (sometimes worse than large corporations). The sheer level of ineptitude and capitalistic disregard of the employees well-being seen here is only slightly less baffling than it is deeply infuriating.
TL;DR – Deeply entitled owner pays the hourly employees less than minimum wage in 2022, is called out as we enter 2023, only to offer a “generous” raise that's even further beneath this year's minimum wage. Proceeds to act like she has no idea she's done anything wrong, wonders why everyone is quitting.
Story:
My girlfriend picked up a seasonal role at a small business in Seattle and we quickly realized that she – and the other junior employees – were being compensated beneath minimum wage. This is one of the more progressive areas of the US, so minimum wage for 2022 is $17.27. The hourly employees were offered $17.00; a difference of $0.27 per hour.
When this was discovered, one of those employees rightfully brought it up to the owner and was given backpay on her next paycheck.
We were curious though. We wanted to see if the owner would be proactive and update the salary for everyone else in that paygrade now that the error was made known.
She did not. (We later found out that the employee's backpay was actually deducted from her yearly bonus, in fact.)
Fast forward a couple of weeks to 2023. After the holidays have ended, my girlfriend is offered a full time role out of the blue.
Shortly after, we find out that the employee whose pay was “corrected” has quit, leaving only a couple of people to run the store. And god forbid the owner has to show up to her own business (because she only communicates with the manager directly via text.)
At this point, things are coming to a head. The manager realizes that the other employees aren't being compensated correctly (illegally) and begins making moves to depart herself, with the intent on listing the pay – and a boatload of other issues – as the reason of her departure in the form of an email. She's in communication with the rest of the proletariat, likely trying to ensure everyone is either informed of this issue or has their pay corrected.
Obviously my girlfriend is not going to accept the offer, especially because once the owner was pressed about a raise, she capitulates and offers a raise to – drum roll – $18 dollars even. Unfortunately, 2023's minimum wage is now $18.69…
How generous! A raise from 27 cents beneath minimum wage to… 69 cents beneath minimum wage.
I'm not sure if the owner is outright malicious or literally one of the most moronic business owners I've ever seen, but this is beyond ridiculous (and illegal). It's not a huge amount of money but it's the most overt and ridiculous case of wage theft I've ever seen – and I've been lurking the subreddit for years.
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Update
The owner was informed straight-up that $18 is not sufficient because minimum wage is now $18.69. The response:
“I don't follow… $18.69 refers to what?”
“Minimum wage in Seattle is $18.69. It just increased, so I wanted to make sure my pay reflects that.”
“Oh, thanks for letting me know. I wasn't aware! I'll bump that up to $18.69 now. :)”
Based on the owner's behavior and philosophies seen in other interactions, it's extremely clear to me that she's the sort of person who has never had to answer to her own mistakes in life. She's obviously playing dumb. Nobody is this stupid. Unfortunately, there are a lot of people who are this evil.
The whole thing is disgusting and illegal. Downright despicable. Especially because the company markets itself as a wholesome, low-waste/green alternative to similar companies.
[More updates to come, no doubt.]