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

closures (1)...

Nate Connors

Seattle highway closures, southbound I-405 shutdown in Bothell mean weekend detours

Drivers traveling through Seattle and Bothell should plan for highway and ramp closures.

36 minutes ago

2 Tom Wales...

James Lynch

25 years after federal prosecutor Tom Wales’ killing, investigators say the case is still active

For 25 years, investigators have been pursuing the killing of Tom Wales, an assistant U.S. Attorney shot at his desk in his home in Seattle’s Queen Anne neighborhood. Federal officials said they are still investigating and need information that could turn what they know into evidence they can present in court. “This is an open […]

2 hours ago

ferry (2)...

James Lynch

‘Not a problem that can be solved immediately’: Gov. Ferguson pledges to address ferry crew wage gaps

Gov. Ferguson said he’s committed to working with the union representing Washington State Ferries engine-room crews on wage gap concerns.

2 hours ago

Museum of History & Industry...

KIRO Newsradio staff

Museum of History & Industry workers vote to unionize

Museum of History & Industry (MOHAI) workers have voted to unionize.

3 hours ago

flu (1)...

KIRO Newsradio staff

‘It could be a rough flu season’: Snohomish County reports first flu-related death this season

Snohomish County is reporting its first flu-related death of the season.

4 hours ago

delivery driver monroe shot...

Lexi Herda, KIRO 7 News

Delivery driver shot at through apartment door in Monroe

The Monroe Police Department said someone shot through an apartment door while a delivery driver was outside.

5 hours ago

Hollingsworth withdraws bill that would have slowed minimum wage increases