Prevailing minimum wages in Washington will increase in 2020

By: Emily Makings
11:02 am
December 17, 2019

When Washington voters approved I-1433 (to increase the state minimum wage) in 2016, three cities in the state had their own, higher minimum wages (and all are indexed to inflation). Here’s what state and local minimum wages will look like come January:

State: Under I-1433, the higher minimum wage was phased in. The final step occurs in 2020, when the minimum wage increases from $12.00 to $13.50 an hour. Beginning in 2021, the state minimum will be indexed to inflation.

SeaTac: Certain hospitality and transportation workers in the city have a minimum wage of $16.09 an hour in 2019. In 2020, that will increase to $16.34.

Seattle: Seattle’s minimum wage ordinance was adopted in 2014. The ordinance specified different phase-in periods for businesses depending on number of employees and whether or not their employees get medical benefits or earn tips. In 2019, all large employers (with 501 or more employees) have to pay a minimum wage of $16.00 an hour. In 2020, their minimum wage will be $16.39.

Small employers (with 500 or fewer employees) that do not offer medical benefits and whose employees do not earn tips pay a minimum wage of $15.00 an hour in 2019. In 2020, their minimum wage will be $15.75. Beginning in 2021, the minimum wage applicable to these employers will be the same as that applicable to large employers.

All other small employers pay a minimum wage of $12.00 in 2019. In 2020, their minimum wage will be $13.50. Under the ordinance, the minimum for these employers will continue to step up until it reaches $17.25 an hour in 2024. (See here for an implementation chart.) Beginning in 2025, the minimum wage applicable to these employers will be the same as that applicable to large employers.

Tacoma: The minimum wage in Tacoma was increased to $12.00 an hour in 2018, after which it is indexed to inflation. In 2019, the minimum wage is $12.35. However, the city’s minimum wage would be $12.54 an hour in 2020. As that is below the state minimum wage, the state’s minimum will prevail in Tacoma going forward. (Under the federal fair labor standards act, where federal, state, and local minimum wages diverge, employees must receive the highest minimum wage they are covered by. Still, the Tacoma City Council will consider an ordinance to repeal its minimum wage at a meeting tonight.)

Barring changes to either the state or city laws, Seattle’s and SeaTac’s minimum wages will stay above the state minimum into the future.

Categories: Categories , Economy , Employment Policy.