There’s a slight raise around the corner for Washington workers when a new minimum wage takes effect Jan. 1.
As of the first of the year, the new minimum rate in Washington State will be $8.55 per hour, up from the current wage of $8.07. A full-time employee earning the minimum wage in 2009 will earn $17,784 per year – $1,000 more than 2008 and $4,160 more than the federal minimum of $6.55 per hour.
The most recent increase will make Washington’s minimum wage the highest in the nation.
The wage increase was approved by voters in 1998, tying the state’s minimum to the cost of living index. According to a press release from the Economic Opportunity Institute, the $0.48 increase per hour represents a 5.9 percent increase from August 2007 to August 2008.
Several merchants in Kent said a minimum-wage increase would not force them to make any changes at their business, with a few saying they already pay above the minimum.
Karl Beavers, owner of Children’s Bookshop and Teaching Supplies, said the new wage would affect a couple of employees, but added that he believes in a “strong minimum wage” and generally pays more. However, in tight times, he said it could affect some.
“Whenever it goes up, it obviously comes off the profit,” he said. “Assuming we are making a profit for the year.”
Lyda Bond at Just the Thing said she only has one employee making the minimum wage, and though that employee would be happy, the additional money would not drag her down overly.
“It won’t affect my bottom line much,” she said.
According to the EOI, 6.2 percent of jobs in Washington State may the minimum wage, with accommodation and food services topping the list of minimum wage employers.
For Dick Lowe, owner of H.D. Hotspur’s restaurant, the increase could mean a significant impact.
“Fifty cents an hour is brutal,” he said. “It’ll impact menu pricing and the number of employees.”
Lowe said most of his employees make more than the minimum, but he may have to cut hours of some employees. He added that because a wage increase comes right off the top, the effects could be wide-reaching.
“It’s unfortunate, but you go for the lesser evil and say ‘I’m going to have to eliminate this position and everyone is going to have to work harder,” he said. “There’s only so much money available to spend on wages.”
Lowe added that in his business, the increase will not necessarily go where it is needed, mostly because many of those who will benefit get tips, while cooks and non-tipped staff could use the increase more.
Washington is one of a handful of states that does not allow a tip credit, meaning tipped employees must have a base salary of minimum wage, as well as any additional money such as tips.
“We’re trying to figure out how to keep people happy,” he said.
Lowe said he also worries because the minimum wage will increase every year, meaning that even in difficult times, additional money will have to be found every January.
“It’s a tough one,” he said. “And it’s never going to stop.”
For more information on the Washington State minimum wage, visit http://www.lni.wa.gov/WorkplaceRights/Wages/.
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