No one working full time should live in poverty. A living wage is good for families, businesses and the community. When employees are paid a living wage, workplace productivity and stability are enhanced, consumer income increases, the need for government assistance decreases, and neighborhood economies are invigorated.

Introduction
Despite a record stock market and strong economic growth, poverty remains high in the United States. One out of five children live below the offical poverty line in the richest nation on earth. The population of America’s working poor has grown because the wage floor has failed to keep pace with the cost of living over the last three decades. The federal minimum wage, which in 1968 stood at 86% of the wage necessary to lift a worker and his or her family to the official poverty line for a family of four, today represents less than 64% of that "living wage." The federal minimum wage, presently $6.50 an hour, would need to be raised to $8.00 an hour simply to meet the federal poverty level. In many higher-cost regions, a true living wage is substantially higher (up to $18 per hour).

The dominant voice of American business has predicted economic doom and mass layoffs in their consistent opposition to minimum wage increases. While none of these forecasts have come to pass when the minimum wage was increased in the past, the business lobby nonetheless remains a powerful obstacle to raising the wage floor to a decent level.

Many business people, investors, and other Americans hold a different view, understanding that paying employees a living wage is good business — creating stronger communities and better customers. However, their voices have not previously come together and thus they have been left out of the debate. Responsible Wealth aims to change this through the Living Wage Covenant. We invite you to join with other employers and investors in support of fair wages.

Business Leaders Support a Living Wage
"Paying a living wage is good for business. I have a stable and productive workforce, which enables me to better serve my clients. Satisfied clients lead to more business and more jobs. Also, my employees have more money to spend which has a very positive economic impact in the community."

—Barry Hermanson, Hermanson’s Employment Services

"It’s unconscionable that, in one of the most prosperous eras in our country’s history, many
businesses can’t commit to pay a living wage. Idyll, Ltd. has an official policy that the highest paid staff person cannot receive more than three times the amount of the lowest paid."

—Hal Taussig, Idyll, Ltd.

"The economy has been growing at a rapid rate, but the buying power of the minimum wage has contintued to decrease. It’s time for businesses to step up to the plate and take some responsiblity. How can I expect an employee to have any dedication to this company if I do not treat all employees with respect by paying them a living wage?"

—Michele McGeoy, RH Solutions