I never know where the truth lies…
My kid brother just graduated CS from Berkeley and got offers ranging from 70-85, plus equity, benefits etc. Still high, but not quite $110k...
Guess asking half the market rate was a serious blunder. Makes OP seem unfamiliar with current salaries of senior-level devs -- and so HR drones assumed he doesn't have any recent senior-level experience.
I _am_ a sr. dev., and I'm fairly certain I'm not making $200k.
But let's assume I'm not as senior as I like to think I am, and check glassdoor.com instead: http://www.glassdoor.com/Salaries/los-angeles-senior-softwar...
The absolute top of the senior ladder lists $200k. At one single company, for one job. (And checking the same thing for Mountain View doesn't yield a significant difference)
So I don't think $110k is "half the going rate" :)
For a $70/hour contract (~$140k/year), it actually costs the company north of $90-$100/hour (over $180k/year) when going through a recruiter.
EDIT: Forgot to mention, this is California law, so it only applies here in California.
EDIT EDIT: I'm a programmer, not a lawyer. Do your own research and talk to your own lawyer before doing anything drastic, please.
Given the cost of living in the area, 70k for a senior developer is a nightmare for everyone, but the fact is there's no shortage of people willing to make the trade so it works for you guys and that is fine. There's a bit of a blowback though, because of the low salaries and beliefs they are normal, it's not the best place to start a company doing anything cutting edge that requires the top tier of talent, and that's why all the really cool stuff is still in the Bay and will probably always be there.
I was told by someone with lots of experience that I worked with for a few years that I should expect $110k when I graduate.
Someone I know just left $200k at a multinational megacorp for the same at a 50-person company.
A team of co-founders I know was acquhired by a different multinational megacorp, and they now make $350k-$500k before bonuses, although they've moved up from pure engineering to running teams and managing other developers.
So $200k is the lowest salary I've heard for people I consider "senior".