A caller on “The Ramsey Show” asked if a business owner can base employee pay on personal financial situations. Joe from San Diego shared that an employee he inherited had financial troubles due to past negligence, yet Joe felt obligated to support him despite trying to wean him off a lavish lifestyle.

Ramsey hosts advised against factoring personal debt into compensation. They emphasized paying a fair market rate and performance-based incentives, warning that going above this could lead to resentment and entitlement. They stressed treating the employee like any other candidate and being prepared to move on if necessary.

Read more at Yahoo Finance: A Business Owner Asked ‘The Ramsey Show’ If He Could ‘Dig Into’ His Employee’s Personal Finances To Determine What To Pay Them