Tuesday, June 10, 2014

Seattle raises minimum wage: What does this mean for the economy?

On June 2, 2014, Seattle passed an ordinance that raised the city's minimum wage to $15.00/hr, which makes it the highest in the nation.  Washington state's minimum wage is $9.32/hr.

The new ordinance, which takes effect on April 1, 2015, includes a phase-in of the wage increase over several years, with a slower process for small businesses.  For companies with more than 500 employees, the ordinance allows a phase-in process over at least three years.  Those companies that provide health insurance will be allowed at least four years to phase-in the increase.  Smaller businesses will be given seven years.

While many believe this will pave the way for other cities to raise their minimum wage and provide a livable wage, others argue that it will cost more jobs.  Many smaller businesses in the area state that with they won't be able to stay in business with the increase in minimum wage. 

States such as Minnesota, California, Maryland, and Connecticut have also passed laws to increase the minimum wage in the upcoming years.  Only time will tell whether it proves to be beneficial.


If you have a question regarding your employment rights, contact Ambuter Law for a free case evaluation.

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