So far, 2015 has been a year with many businesses and hiring trends making headlines daily. Cities have raised their minimum wage, companies have made unique (and sometimes controversial) personnel decisions, and court decisions have thrown some companies' entire existence into jeopardy. These stories continued to be front-page news. Here are the updates for the biggest four stories of 2015 so far.
Walmart Gives 500,000 Employees a Pay Raise
When the retail giant notorious for low pay decided to raise the hourly wage for 40% of its workforce, it was applauded for following successful companies with high wages. The company estimated it would be spending an additional $1 billion in increased pay and revised training programs. Almost 6 months later, Walmart is experiencing weak second quarter earnings and has predicted that extra expenditures in pay will decrease its earnings per share by 24 cents in 2015. However, Walmart is confident investors will see a payoff for higher pay; same-store retail sales were the highest in 3 years and the company had its third straight quarter of higher traffic (CNBC, 8/18/15).
Lawsuits Spell the End of the Sharing Economy?
A wave of lawsuits against companies that are part of the "sharing" or "gig" economy had their entire business model thrown into jeopardy. The suits claim that that companies like Uber and Lyft exploit workers by classifying them as independent contractors, not as employees, and therefore avoid paying benefits, health insurance, and other costs. Last week, a judge in California allowed drivers in a class-action lawsuit against Uber to proceed with their claim. If the drivers win, Uber could face a large settlement - and more devastatingly - a possible change to their business model, at least in California.
The Company with a Starting Salary of $70,000
In April, Dan Price, CEO of Gravity Payments in Seattle, decided that all 120 employees at his company would earn at least $70,000 a year. The choice was both lauded as a smart and generous business practice and also criticized as foolishness that would make the company unstable by eating into its profits. Just 3 months later, Price is seeing some fallout from his decision. Two of the company's "most valued" employees quit and although the company was signing on new clients from the positive publicity, some customers left, anticipating a rate hike.
Los Angeles' $15 Minimum Wage
Los Angeles became the largest city to pass legislation that would institute a $15 minimum wage and a familiar debate around the possible benefits or detriments ensued. The success of the Fight for $15 in Los Angeles, also spurred other cities to raise their minimum wage. New York plans to raise wages for fast food workers to $15 an hour by 2018. In the Bay area, an arms race of raising wages was triggered as Berkeley, Oakland, and Emeryville all increased minimum pay.
Readers, what do you think has been the top story this year? Comment and let us know!