MYNORTHWEST NEWS

Clock is ticking for Seattle businesses to bump up minimum wage

Mar 10, 2015, 8:59 AM | Updated: 11:01 am

The $15 minimum wage ordinance goes into effect April 1. Though small businesses have options of ho...

The $15 minimum wage ordinance goes into effect April 1. Though small businesses have options of how they can pay higher wages, questions are still being asked. (AP)

(AP)

Seattle business owners have some major decisions to make before April.

The $15 minimum wage ordinance goes into effect April 1. Though small businesses have options for how they can pay higher wages, questions remain.

Business owners want to find out what is expected of them before the ordinance goes into effect because they are “eager to comply,” said Karina Bull, senior policy analyst for the Seattle Office for Civil Rights.

Related: Businesses seek to block portion of Seattle minimum wage law

“The primary concern is: what does it all mean?” she said.

A higher minimum wage will be phased in over a period of time. The law gives businesses with more than 500 employees nationally at least three years to phase in the increase. If health insurance is provided, they have four years.

Smaller business owners – 500 or less employees – will have seven years to phase in the higher minimum wage. There are phase-in options for owners to choose from, which is what some owners seem to be struggling with.

The ordinance is also the focus of a lawsuit that goes to US District Court Tuesday. The International Franchise Association is suing, saying the ordinance is discriminatory because it requires franchise owners to raise their minimum wage as quickly as big business. There are approximately 600 franchisees in Seattle who together own 1,700 franchise locations and employ 19,000 workers.

The bulk of employers is made up of small businesses, even though most people work for larger companies, Bull said.

“Small business owners are aware that the structure gives them options on how to reach the minimum wage and minimum compensation rate,” said Bull. They are “trying to figure out what, for their business, makes the most sense.”

The question for small businesses is: do they take advantage of phase-in options, or pay employees higher wages right out of the gate?

An independent cafe, for example, might feel the need to pay higher wages to compete with other employers, Bull said.

Business owners will be allowed to pay lower wages if they also pay for medical benefits. Some owners feel uncomfortable giving full-time employees $10 an hour with medical benefits, while part-time employees are making $11 without those benefits, Bull said.

“Some employers find that inequitable,” she said.

Washington’s minimum wage is $9.32 an hour, the highest wage of any state. The federal minimum wage is $7.25 an hour.

Though businesses are still figuring out how to deal with the higher wages, Bull believes it will be a benefit to the local economy.

“Overall, the higher wages will lead to more money pumped into the economy and increased spending power of the people in Seattle,” she said.

Bull said a higher minimum wage will lead to less employee turnover, increased moral and tenure and better job satisfaction. And, “certainly helping people get a livable wage.”

MyNorthwest News

Hood Canal Bridge (1)...

MyNorthwest Staff

Stalled semitruck cleared after blocking Hood Canal Bridge for more than an hour

A stalled semitruck was blocking the entrance to the Hood Canal Bridge.

5 hours ago

celestial events...

Julia Dallas

4 celestial events will light up the sky on Aug. 12

Wherever you are on Wednesday, Aug. 12, take a moment to look up. Four celestial events will be taking place throughout the day.

6 hours ago

seattle man arrest...

James Lynch

Online sting leads to arrest of Seattle man as law enforcement ramps up predator crackdown

The Kitsap County Sheriff’s Office (KCSO) said an online undercover operation has led to the arrest of a 29-year-old Seattle man.

7 hours ago

_Aaron Farinacci spokane fires old trails fire...

MyNorthwest Staff

$2M bail set after arson suspect admits to planning Old Trails Fire, setting 25 other fires since July 2025

The man arrested for arson in connection with the Old Trails Fire in Spokane told detectives he planned to start the fire.

7 hours ago

Kitchen & Market...

Julia Dallas

Kitchen & Market expanding to Seattle neighborhood in 2027

Kitchen & Market, which touts itself as being "way more than a grocery store," is expanding in Seattle.

8 hours ago

Spokane fires (1)...

Brooke Griffin, KIRO 7 News

Spokane community helping each other and emergency responders during devastation

As three wildfires continue to burn across Spokane County Thursday morning, the community is coming together to help first responders.

9 hours ago

Clock is ticking for Seattle businesses to bump up minimum wage