Caller asks if it's appropriate to inquire about employee's finances for pay

From Yahoo Finance: 2025-07-02 12:30:00

A business owner sought advice on “The Ramsey Show,” wondering if it’s appropriate to inquire about an employee’s personal finances to determine their pay. The employee had run a business into the ground, owing over $20,000 in taxes and mismanaging funds. Ramsey’s co-host advised against using personal finances to determine pay.

Despite wanting to be generous, the business owner was cautioned not to base pay on an employee’s personal financial situation. The co-host stressed the importance of offering a salary that allows for a comfortable living, without considering an individual’s debt. The business owner estimated the market rate for the job to be $75,000 to $90,000, with any amount beyond that considered unnecessary.

Exceeding the market rate for the job could lead to resentment and problems, as the employee may not make necessary changes. It’s advised to stick to a reasonable salary range to avoid potential issues in the future. The business owner was reminded to focus on fair compensation rather than trying to solve the employee’s financial problems.



Read more at Yahoo Finance: ‘Dave Ramsey’ Caller Asks If It’s Appropriate To ‘Dig Into’ An Employee’s Personal Finances To Decide Their Pay, And It Gets Complicated Fast