MYNORTHWEST NEWS

Hollingsworth withdraws bill that would have slowed minimum wage increases

Aug 3, 2024, 5:20 PM | Updated: 5:51 pm

Cooks, service workers...

Seattle's new minimum wage was announced Thursday. (Getty Images)

(Getty Images)

Seattle City Councilmember Joy Hollingsworth has decided to withdraw a bill she introduced just a week ago, which aimed to slow the city’s minimum wage increase for small businesses next year.

According to the Seattle Times, this decision follows significant backlash from those who wanted to see the law enacted as is. Critics accused Hollingsworth of betraying low-wage workers and breaking a decade-old agreement.

Seattle’s minimum wage deal was a significant agreement between business and labor leaders. The deal, struck in 2014, established a phased-in approach to raising the minimum wage to $15 per hour. For businesses with 500 or fewer employees, there was a 10-year phase-in period, allowing them to credit tips and benefits towards the minimum wage. This effectively meant these smaller businesses could pay a lower rate compared to larger businesses.

Gee & Ursula: Hollingsworth wants to strike a balance on minimum wage requirement

This phased approach was designed to give smaller businesses more time to adjust to the higher wage requirements. However, this credit is set to expire next year, which will eliminate the two-tier system and result in a more than $3 per hour increase in the base pay rate for many establishments. This upcoming change has sparked renewed debate and concern among small business owners and workers alike.

“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 before her decision to withdraw. “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.”

MyNorthwest News: Will the minimum wage for delivery drivers in Seattle be lowered?

The latest move is likely to disappoint many small business owners in Seattle, especially those in the restaurant industry. They have expressed concerns that the more than $3 per hour wage increase next year could be devastating for their businesses, which have already faced challenges since the pandemic.

The scheduled removal of a credit next year will eliminate the current two-tier system, effectively raising the base pay rate by more than $3 per hour for many businesses, when combined with the usual annual adjustments.

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, here and email him here

MyNorthwest News

drones spokane wildfire...

Chris Sullivan

Private drones continue to hamper firefighting efforts in Spokane

The time to take personal video of the devastation in Spokane is after the fire is out and homes stop burning, not during the emergency.

25 minutes ago

marysville farming closure lay off...

Jason Sutich

Indoor farming company in Marysville ‘winds down,’ laying off 55

An indoor agriculture company in Marysville is permanently "winding down" and laying off 55 employees after acquisition negotiations fell through.

1 hour ago

Spokane wildfire smoke photos...

MyNorthwest Staff

Gallery: KIRO listeners share photos of Spokane wildfire smoke blanketing the region

An air quality alert remains active for the Seattle area as smoke and high temperatures are expected to affect sensitive individuals through Tuesday.

2 hours ago

Coquille River 2 people stranded oregon coast guard...

KIRO 7 News Staff

Coast Guard rescues 2 people stranded on rocks in the Coquille River in Oregon

The U.S. Coast Guard rescued two people Monday after their 14-foot pleasure craft began taking on water near the Coquille River South Jetty in Bandon, Oregon.

3 hours ago

spokane complex fires destroy evacuate...

Lexi Herda, KIRO 7 News

Spokane Complex Fires: 700 homes destroyed, 65K evacuated

The announcement comes as at least 65,000 people have been evacuated, and 700 homes have been destroyed by a series of wildfires in the Spokane area.

6 hours ago

olympia election official threats...

Madeline Ottilie, KIRO 7 News

‘We’re not going to shy away from it’: Local elections offices increase security to manage threats

A survey of hundreds of local election officials found that nearly a third have experienced threats, harassment, or abuse because of their job.

6 hours ago

Hollingsworth withdraws bill that would have slowed minimum wage increases