Gee & Ursula: Hollingsworth wants to strike a balance on minimum wage requirement
Aug 1, 2024, 1:44 PM
Seattle City Council member Joy Hollingsworth is re-opening the can of worms called Seattle’s minimum wage law and KIRO Newsradio hosts with “The Gee and Ursuala Show” want to know why.
Co-host Ursula Reutin said Hollingsworth “is now exploring the idea of delaying a nearly $3 an hour minimum wage increase that has been in the works for a decade.”
Credit for tips and benefits has been allowed under the city’s minimum wage law since 2015, but it was supposed to expire next year. Some say the increase will put small stores and restaurants out of business leaving employees out of their jobs.
Hollingsworth’s proposal would allow businesses with fewer than 500 employees to continue crediting tips and benefits toward their minimum wage obligations.
Background: Minimum wage debate pits small business survival against workers needed pay
“What we’re trying to do is continue to save jobs, ensure that businesses can take this impact as well and make sure that also workers are going to get the minimum wage payment,” Hollingsworth said on KIRO Newsradio. “But we want to make sure that we’re doing it in a way that’s very thoughtful, and that our small businesses can be able to provide those jobs.”
Co-host Gee Scott wanted to know what Hollingsworth would say to a worker who will not be getting the minimum wage increase in January in a city where the average rent is $2,000 a month.
“Restaurants can still use a tip credit, that accounts for the $2.75 going towards someone’s minimum wage,” Hollingsworth said. “We’re not trying to take away wages. We’re literally just trying to find a balance in which, you know, businesses can continue to exist.”
Proponents of the minimum wage law as it’s written have hit back strongly. They said the debate took place years ago and now it’s time to pay up. Hollingsworth disagreed.
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“There’s so many different lenses on this. I think the one thing that I want to get across to everyone because it’s being painted a picture that’s really different, is that I do not believe workers should rely on tips to make a minimum wage at all,” Hollingsworth said.
“I also want to make sure that those jobs don’t exist in an unhealthy environment. And so whether it’s saying, ‘Hey, can we wait till April to roll this out to where rent revenues are up for restaurants?’ so they can withstand this hit instead of a January where we know from November to March that those revenues are considerably down,'” she continued.
Hollingsworth said it’s all part of figuring out ways businesses can absorb this.
“It’s really hard to make it in our city,” she said. “The unaffordable housing costs are crazy. People cannot afford to live here. They cannot afford groceries. I understand all of that. I’m just asking restaurant labor workers to figure out if there is a way we can roll this out in a way that makes sense so we keep those jobs. That’s all I’m asking.”
Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X and email him here.
