On Monday, the Seattle City Council unanimously approved the adoption of a $15 per hour minimum wage, making Seattle the first major city in America to take such an action to address income inequality.
“Today we answer President Obama’s call and the moral call to address the plight of low wage workers,” said Councilmember Sally J. Clark, chair of the City Council’s Select Committee on the Minimum Wage and Income Inequality. “Seattle’s new law puts low wage workers on a path to $15 and does it in a way that respects Seattle’s love for local businesses and world-leading innovation.”
Beginning April 1, 2015, the legislation will phase-in a $15 per hour minimum wage annually over 3 to 7 years, depending on employer size. Washington State’s currently has the nation’s highest minimum wage at $9.32 per hour.
According to a study by the University of Washington, twenty-four percent of Seattle workers earn hourly wages of $15 per hour or less, and approximately 13.6 percent of the Seattle community lives below the federal poverty level. Effective April 1, 2015, the minimum wage in Seattle will be $10.00 or $11.00 per hour depending on employer size. That amount will increase annually through 2025 when it is estimated that all classes of businesses will pay a minimum wage of $18.13. In addition, all businesses will pay $15 by 2021.
“With inaction at the state and national levels, it’s time for cities to demonstrate bold and necessary leadership to address income inequality,” said Council President Tim Burgess. “Seattle has found a workable and careful compromise that recognizes both the harm caused by stagnant wages and the harm to local businesses should we move forward too quickly.”
Seattle Mayor Ed Murray forwarded a proposal to the City Council after it had been developed by a stakeholder group, which included representatives of Seattle’s business, labor and non–profit communities and three councilmembers. The Seattle City Council, reviewed relevant studies, held public forums for feedback, hosted industry-specific discussions, considered the Mayor’s proposal and heard thousands of community comments over the first half of 2014.
“This is a historic moment: the culmination of workers banding together over a year ago to raise the national debate on income inequality. Seattle listened and today, we are acting to help workers earn a living wage,” said Councilmember Bruce Harrell. “This is one of the most important race and social justice-related legislation enacted, most positively impacting people of color, women and immigrants. We must continue working with small businesses and the ethnic minority community to support their growth and help them succeed.”
“This is a victory for our movement – it shows the power of working people when we organize and fight for our rights,” said Councilmember Kshama Sawant. “It will inspire millions of people all over the nation to build on this historic step forward. Fifteen in Seattle is just the beginning.”
Murray signed the legislation on Tuesday, and it is scheduled to take effect on July 3.
