Seattle Expected to Raise Minimum Wage to $15 Per Hour
Seattle could become the first city in the country to raise the minimum wage to $15 per hour, enabling citizens to live on hourly wages.
While the effects of the wage hike on businesses are not yet known, the historic change will allow minimum wage workers to enjoy greater financial security.
Seattle citizen Martina Phelps, 22, says the Seattle City Council vote to raise the minimum wage to $15 Monday will allow her to achieve bigger goals.
Phelps, who works at McDonald's for $9.47, says she will be able to move out of her mother's home and go back to school if the minimum wage hike is approved.
"It's hard right now," she told USA Today. "I have been trying to save up for school but I just can't do it. This would mean a lot."
While the majority of citizens support the increase, most Seattle businesses are opposed to the anticipated change. Craig Dawson, CEO of Seattle's Retail Lockbox, suggested that small and minority-owned businesses will face burdensome personnel costs if wages increase.
The proposed plan was modified last week to appease small businesses while allowing for the bill's seamless passage.
The compromise plan would raise the Seattle minimum wage from $9.32 per hour -- which is already the highest in the country, above the federal minimum wage of $7.25 -- over a period of three to seven years. The wage hike will be phased in based on the size of businesses and the benefits they offer employees.
According to city officials, it is estimated that a quarter of workers earn less than $15 per hour.
"A year ago, $15 was just a number on fast food strikers' picket signs," Working Washington, a coalition of labor and community groups, said in a statement Monday. "Today it's set to become reality for 100,000 Seattle workers."
The plan was drafted by a group of labor, non-profit and business experts. The City Council committee agreed to delay enacting the law to April 2015 instead of Jan. 1 of next year. The council rejected amendments to the ordinance that would have sped-up the implementation of the plan, and also approved a sub-minimum wage for teenagers.
According to the plan, businesses employing more than 500 workers would have to pay their workers $15 per hour by 2017, or 2018 if health care is offered. Smaller businesses would be given more leeway, with implementation phased in in over five to seven years. Part of employees' tips and benefits would be put toward the wage increase for up to 11 years.
The plan was approved with a unanimous vote by the City Council, meaning the law is likely to pass.
"Seattle, and other cities, are taking direct action to close our nation's huge income gap because the federal and state governments have failed to do so," said City Councilman Nick Licata. "By significantly raising the minimum wage, Seattle's prosperity will be shared by more people and create a sustainable model for continued growth."
While the measure is likely to pass, a group called 15 Now is collecting signatures that would lessen the timeline to phase in the wage increase. The measure would amend the plan to have an immediate wage hike for large businesses, with a time period of three years for businesses with less than 250 employees. The measure needs more than 30,000 signatures to go on the ballot.
And Washington isn't the only state aiming to raise the quality of life for minimum wage workers.
The California Senate voted to raise the state's minimum wage to $13 per hour last week, but the bill's passage is still not certain.
The California bill has now entered policy committees for the Democrat-controlled Assembly, according to the Sacramento Business Journal.
While most businesses are against the hike out of fear that it will increase costs, it has a good chance of passing because many Democratic Assembly members are in districts with liberal bases that support the increase.
Gov. Jerry Brown's voting record is not telling as to whether or not he will approve the increase, as his voting record does not predictably fall within party lines. However, he signed a minimum wage increase last fall that raised the state's minimum wage to $10, and also supported a tax increase in 2012.
Subscribe to Latin Post!
Sign up for our free newsletter for the Latest coverage!