Seattle's minimum wage is going up again in 2020. But is it enough to afford to live in the city?
Seattle’s minimum wage is going up again in 2020, inching closer to the $15 minimum wage across the board for all employees. But even with the increases, it still might not be enough to afford basic costs of living in the city.
The city’s Office of Labor Standards announced this week the new minimum wages which will go into effect Jan. 1, 2020, as required by the Minimum Wage Ordinance. For large employers with 501 employees or more, the minimum wage is going up 39 cents to $16.39.
For small employers with 500 employees or fewer -- that don’t pay at least $2.25 an hour toward employee’s health benefits and where employees don’t get that same amount in tips -- the minimum wage is going up to $15.75 from $15. For small businesses that pay at least $2.25 an hour toward employee’s medical benefits or if an employee earns at least $2.25 in tips, the minimum wage is set at $13.50 an hour. In 2021, that is set to go up to $15 an hour.
Activists and officials have been fighting for higher minimum wages in Seattle and across the country for years, arguing workers need a higher income to be able to afford basic costs of living. Federal minimum wage has remained at $7.25 an hour for years, as states and cities have passed measures to raise that minimum. Across Washington in 2019, the minimum wage was set at $12 an hour.
Earlier this year, the House of Representatives approved legislation that would increase the federal minimum wage to $15 an hour by 2025. The Congressional Budget Office reported in a study at the time that raising the minimum wage would result in at least 17 million people receiving a wage increase, but could put 1.3 million out of work.
When the minimum wage goes up, in general, employers are focused on finding more experienced workers, said Jacob Vigdor, a professor of public policy at the University of Washington and the director of the Seattle Minimum Wage Study. It’s easier to justify paying someone a higher wage if they already know how to do the job and don’t need to be trained, he said. With that logic, young workers who are just starting out and looking for a job would have a harder time, he said.
But, Vigdor said, in Seattle, a lot of jobs aren’t even offering the minimum wage anymore. They’re actually offering more. Raising the minimum wage has effects unless that minimum wage is below the market wage, Vigdor said.
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certainly not enough to finance a small family.
However, raising wages actually increases the number of people looking for work. 