The $15 Per Hour Debate

Some states, counties, and cities have moved to, or are flirting with a move to, a $15 per hour minimum wage.  The concept is also now part of the current national presidential race.  Hillary Clinton recently said that she would sign a $15 federal minimum wage bill if it had certain stipulations in it, such as a gradual phase in.  Donald Trump has stated that he would leave the minimum wage the way it is, to permit the US to compete against the World.  

Seattle has had a $15 minimum wage for about a year.   According to a recent University of Washington-led study, retail prices in Seattle have not increased in the year since the city's $15-an-hour minimum wage took effect.  The UW's Evans School states that it’s “preliminary analysis of grocery, retail and rent prices has found little or no evidence of price increases in Seattle relative to the surrounding area.”
The City of Seattle's $15 minimum wage ordinance was adopted in June of 2014, and began taking effect on April 1, 2015. Under the law, businesses with fewer than 500 employees will reach the $15 an hour wage in seven years, or 2021. Employers with 500 or more employees (either in Seattle or nationally) will reach that level in three years.
While it is likely too early to fully understand the impact of Seattle’s $15 minimum wage, the debate to move to a higher national or Washington State minimum wage is underway.  For example, House Bill 1355 proposes to increase the minimum wage to $12 per hour statewide over four years.

As for the pros and cons of a $15 per hour minimum wage, the below summaries some of the key arguments for and against a rate increase:

For:

Allows for a living wage to employees
Addresses Income inequality
Workers who make more money will spend more money.
There is no negative effect on the economy

Against:

Hampers growth of small businesses that cannot afford higher labor costs
Results in businesses cutting staff
Prevents equilibrium wages, which are wages are those that match the number of workers to job demand
Increasing the minimum wage could move people off public assistance who need the assistance

Brian A. Walker helps businesses and individuals in employment, business, and real estate related litigation and transactions from the Wenatchee office of Ogden Murphy Wallace PLLC. You can reach Brian at bwalker@omwlaw.com or at (509) 663-1954.