In a historic city council vote on Monday, Seattle, Washington will raise the minimum wage to $15. Going into effect April 1, 2015, Seattle currently has the nation’s highest minimum wage at $9.32, well above the federal minimum of $7.25.
City officials estimate that about a quarter of workers earn less than $15 an hour. At that rate, full time work translates to about $31,000 a year.
Businesses employing more than 500 workers would be required to pay the increase by 2017, or 2018 if health care is offered. Smaller businesses would have five to seven years to implement the change. Included in the ordinance is a lower training wage for teenagers, a rate unspecified, for the first 90 days on the job.
Trade groups representing corporate franchises plan to sue to overturn the unanimous vote, citing the increase will put small business owners at a disadvantage. The higher wage would increase personnel cost for budding entrepreneurs.
Critics of the new ordinance believe businesses will be forced to lay off workers due to increasing costs. The use of technology in fast food restaurants are already prevalent and growing, such as pay kiosks and self checkout lines at grocery stores. The pay between skilled and unskilled employees will no longer differ either, causing concern for education and trade requirements and certifications.
Meanwhile, other states have passed or are considering proposals to adopt a $10.10 minimum wage. Most recently, Michigan raised its minimum wage to $9.25.
Photo credit: Seattle.gov