The effects of major corporations paying low wages

Academic Paper from the year 2017 in the subject Leadership and Human Resource Management - Miscellaneous, grade: 6.3, , language: English, abstract: Prime companies, unlike what most many of us believe, are responsible for underpaying workers even as they manage superb profits and healthy balance sheets. A report by the National Employment Law Project has shown that about two-thirds of all American low-wage earners are employees of companies that have more than 100 employees. Such companies include McDonald's and Wal-Mart. In today's economy, some corporations have discovered that employees are willing to work not only for lesser pay but little benefits if any since the economy is not attractive. More than 90 percent of the top 50 largest employers of these workers were profitable in the last economic year, and more than half of these companies are now enjoying even greater profits than they did before the recession hit, which is a suggestion that they could stomach a raise in the employees' minimum wages.