By Aaron Allen, The Seattle Medium
Beginning January 1, 2024, the City of Seattle’s minimum wage will increase to nearly $20 per hour, making Seattle’s minimum wage one of the highest in the country.
According to the Seattle Office of Labor Standards (OLS), the minimum wage for small and large employers with 501 or more employees shall increase to $19.97 an hour. The minimum wage will increase to $17.25 an hour for small businesses that have 500 employees or fewer and that do not pay at least $2.72 an hour towards employees’ medical benefits or if the employees make at least $2.72 an hour in tips.
Seattle’s current minimum wage is $18.69 an hour. The incoming raise will be a 6.8% increase from 2023.
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Based on the Consumer Price Index for the Puget Sound region, OLS says the minimum wage increase reflects the rate of inflation.
“Seattle has one of the nation’s highest minimum wages – a clear commitment to creating a city where working people can live and thrive,” Mayor Bruce Harrell said in the release. “We will continue to advance policies and programs that support working people and ensure Seattle remains a bastion for workers’ rights.”
Additionally, the Washington State Department of Labor & Industry announced that the statewide minimum wage will increase from $15.74 to $16.28 an hour, which is the highest state-level minimum wage in the country, beginning on Jan. 1 as well. This accounts for a 3.4% increase from 2023.
As the new year begins, more than 20 states will raise their minimum wage to ring in the new year.
Earlier this year, New York lawmakers approved gradually raising the minimum wage in New York City, Westchester County, and Long Island to $17, and to $16 for the rest of New York state, by 2026. On Jan. 1, 2024, New York City, Westchester County, and Long Island will increase to $16, and the rest of the state will increase to $15.
In Maryland, Governor Wes Moore signed a bill accelerating the minimum wage increase in that state to $15, which will take effect on New Year’s Day.
The highest state minimum wages in effect as of Jan. 1, 2024, will be Washington State and California at $16. The District of Columbia minimum wage, which increases annually on July 1, is currently at $17.
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Locally, business owners have mixed feelings about the continued increase in minimum wage, which started at $15 per hour, but acknowledge that it is a cost of doing business that they have to account for.
“I have been a part of the minimum wage movement as my wife and I have several businesses, including a staffing service for the last 25 to 30 years, so when it comes to staffing, one of the number one things we had a challenge with was what people get an hour,” says Theo Martin, owner of several businesses, including Island Soul restaurant. “To live in Seattle, the wages are what separates those that have and those that don’t have is how much you get paid an hour.”
“When I hear the news [about the increase in the minimum wage], I understand it, and I am a supporter of increasing the minimum wage,” Martin continued.
Another local business owner, who didn’t want the name of their business disclosed for this story, said that the biggest problem that he has is hiring and keeping employees.
“I want to provide my employees with a competitive wage, but having a minimum wage that increases every year makes it hard for me to hire and keep employees,” he said. “I have always paid more than the minimum wage, and these days you can’t offer an employee minimum wage and expect them to accept a position with you. A few years ago, $18 an hour was a pretty good wage for many people I employ. Today, I have to negotiate with almost every employee that I hire, and there is no guarantee that I’ll be able to keep them.”
Lillian Rambus, owner of Simply Soulful Restaurant in the Central District of Seattle, is well aware of the sacrifices small businesses will have to make but she is also empathetic about the plight employees face with the high cost of living.
“Payroll is already high for a lot of small businesses as well as finding quality candidates for employees,” says Rambus. “But I also understand people have to make a living.”
“This can affect business from a negative standpoint as well because of the rising cost of supplies and goods and the rising cost of labor it just makes those margins harder to meet,” she continued. “Especially with restaurants, we are a low-margin industry, most restaurants average 5 to 10 percent of whatever their profits are or whatever their gross is, it is why a lot of restaurants don’t survive.”
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For many business owners, the balancing act is what will ultimately determine whether a business will be able to survive and thrive under the current economic conditions.
While all of the business owners who spoke to the Seattle Medium were supportive of providing their employees with livable wages, they all agree that the minimum wage has made the employment market more competitive and favor those who have the ability to pay top dollar for talent.
“I think what this will do, if I have to look at what I look at as a business owner, is number one, you are going to have know what it takes to keep the people that you have,” says Martin. “We know that people will leave for fifty cents more an hour, I could lose employees for 25 cents more an hour and so to me [the minimum wage hike] puts us more in a competitive market in terms of keeping long term employees.”
“[As a business owner], I have to step up my game and make sure I keep people, because my goal is building lifetime relationships with employees and customers,” Martin concluded.
