Seattle Raises Minimum Wage To $15 On May Day (Video)
via Think Progress
Seattle will raise its minimum wage to $15 an hour over the coming years under a deal brokered by Mayor Ed Murray and blessed by labor and business groups alike, city leaders announced Thursday afternoon.
The new pay floor will phase in at different speeds for businesses of different sizes, but all employers will have to meet the $15 minimum wage by the end of the decade. Businesses with more than 500 employees nationwide will have a three-year phase-in period, while smaller employers get five years to ratchet up their payscales.
After reaching $15 an hour, the city’s minimum wage will automatically climb by 2.4 percent each year regardless of the rate of inflation. Even among states with relatively strong minimum wage laws, automatic increases are uncommon. Thursday’s deal will make Seattle the national leader on municipal minimum wage laws. Washington currently has the highest pay floor of any state at $9.32 per hour.
Kshama Sawant led the charge for this. You know, the Socialist who was elected to the City Council last November. I would love to hear people say this is bad and why. This is the best thing that has happened to workers in my lifetime. I can only hope it spreadsand goes national. If it doesn’t, guess where I’m moving…
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While on the surface this seems like a good idea, in reality it is going to have consequences that are going to be severe to the workforce of Seattle. How are small businesses going to be able to afford this? Well let’s see. Let us say I own a daycare center in Seattle. I am limited to the number of children I can care for by state law. So the only way I can pay higher wages is to raise my price. I can barely afford to pay my employees now so up goes my price. My clients who may or may not have gotten a raise, probably not most are already making more than that, will have to pay more. But what about the state paid children? I will get the same amount for them as the rest of the states daycares get now. Which doesn’t pay enough to cover my employees and other expenditures before the increase. This is just one example. Food prices will go up as will all other commodities and service prices will go way up. Why would I work doing any kind of mentally taxing or hard labor job when I could flip burgers for 15 bucks an hour? Why not raise it to 50 bucks an hour if this is such a great idea? Or 100 bucks? We could all be rich , right? BTW, Mort this isn’t to pick on you. Love reading your articles.
So if businesses can’t reduce costs. They will reduce employees. If they can’t reduce employees as in the case of my daycare example. State requires so many caregivers based on # of children. Then businesses will have no choice but to close.