Shortly after taking office in January, Seattle’s new Mayor made implementing a citywide minimum wage rate a priority. His proposal has rapidly gained support and the measure is now in the final stages of becoming law.
As proposed, the minimum wage rate for employees of small employers will start at $10.00 per hour beginning in 2015. The initiative also establishes a guaranteed minimum compensation rate for employees of small employers starting at $11.00 per hour, which can be achieved by combining employer-paid health care contributions, consumer-paid tips, and employer-paid wages. Beginning in 2015, the minimum wage rate for employees of large employers will start at $11.00 per hour.
Ultimately, the minimum wage for all employees will reach $15.00 per hour:
- Small businesses (businesses with fewer than 500 employees) will reach a $15.00 per hour minimum wage in seven years. The $15.00 per hour can be reached in the first five years through a combination of health care, tips and wages.
- Large businesses (businesses with 500 or more employees, either in Seattle or nationally) will reach $15.00 per hour in three years. For those employees who receive health care, their wages will be required to reach $15.00 an hour in four years.
Once the $15.00 per hour rate is reached, future increases in Seattle’s minimum wage rate will be tied to increases in the Consumer Price Index (CPI). Under the current proposal, no industry, organization or class of employers is exempt, except as provided under state and federal law. Washington State’s 2014 minimum wage rate, which is adjusted annually based on the CPI, is currently $9.32 per hour.