Hey Rich (sudsmaster)-
That's what we call a Yankee Swap, and we usually have one here for the holiday party! It's a lot of fun, especially when there's one real cool thing everybody wants. When we used to do it at work parties, scratch (instant lottery) tickets were always the ones that people took from others!
As far as their pay, $400 there and $400 where you are just ain't the same, no more than it would be here. I'm sure they receive at least twice from Lee what they'd receive if they worked at Wal-Mart! And, 2 weeks vacay with a 3rd tacked on after 5 years? Not bad considering at least some (my guess is most) barely speak English! Hopefully they're all at least legally here and able to work.
JeffG- "but buying gender-specific gifts for a secret santa is brutally stupid."
Remember, these people don't necessarily understand a lot of English, as has been alluded to. They wouldn't get the idea if it was a general Secret Santa. However, if it was Secret Santa where they each drew a person's name, and understood that that's who they were buying a gift for, then I'd agree.
Hey, Lee, you did a good thing. Sure, other suggestions here may have been somewhat better or worse, but it remains that you tried to do something nice for them. And, you succeeded. It's on them that they didn't appreciate it. If I were you would I do it again? Tough to say since, 1) I'm not you, and, B) things change in 11 months, when the next holidays come around again!
Merry Happy,
Chuck