When it comes to money, Democrats and Republicans don’t agree on much in Olympia.
But there’s a common consensus when it comes to the cost of living — constituents across the state are struggling with a number of affordability issues, such as housing, groceries and health care.
A group of House Democrats wants to see the state’s minimum wage raised to $25 to support low-wage workers. Republicans want to see the cost of goods go down.
House Bill 1764 proposes raising the state’s hourly minimum wage to $25 at the start of 2031 by making yearly increases of $1.50 beginning Jan. 1, 2026. Some Republicans feel that raising wages fails to address the root cause of the state’s affordability issues and business owners have raised concerns about the impact of rising labor costs.
The state’s current hourly minimum wage of $16.66 is the second highest in the country, with local jurisdictions like Seattle boasting a minimum wage of more than $20 an hour. Some lawmakers say it still isn’t enough to make ends meet.
In 2016, voters in Washington passed Initiative 1433, which raised the minimum wage from $11 in 2017 to $13.50 in 2020. From 2021 onward the Department of Labor and Industries has adjusted minimum wage for inflation using the Consumer Price Index for Urban Wage Earners and Clerical Workers.
House Bill 1764 follows the same structure. After the required yearly raises are complete in 2031, the state would return to using the index to set the minimum wage.
In addition to minimum wage increases, the bill would also require that employers give employees 2.3 hours of paid vacation leave for every 40 hours of work and provide at least five days of paid bereavement leave per year.
The bill states that tips, gratuities and service charges may not count toward the state minimum hourly wage or the local government’s required higher wage.
Rep. Sharlett Mena, D-Tacoma, the primary sponsor of House Bill 1764, said rising costs are forcing Washington residents to pick up a second job “just to get by.”
“People should be able to work one job and afford their basic needs,” Mena said. “They deserve to rest.”
She acknowledged the bill is likely to present challenges for small business owners, but she is confident it is possible to achieve higher wages while also keeping businesses open.
“We can have both a healthy economy and well-paid workers,” she said.
Daviyon Hinnant, a father of three and a member of Teamsters Local 117, testified in support of the bill. He said the majority of workers are “living to work” in order to keep the lights on and support their families.
“In this process, we miss a lot of important milestones, as far as wedding anniversaries, kids’ sporting events and even parent teacher conferences,” he said.
Rep. Joe Fitzgibbon, D-West Seattle, said lawmakers know constituents across the state continue to struggle with the cost of groceries, gas, child care, health care and other basic living. However, according to Fitzgibbon, the bill will “probably not” be passed into law this year, though he didn’t say why.
Lawmakers propose $25 an hour minimum wage for 2031
A 2016 voter initiative dictated a statewide minimum wage increase from $11 in 2017 to $13.50 in 2020. Now lawmakers are proposing a raise from $17.50 in 2026 to $25 in 2031.
Washington State Department of Labor and Industries, House Bill 1764 (Fiona Martin / The Seattle Times)
Republican lawmakers say raising the minimum wage won’t address the state’s affordability issues.
During a Tuesday news conference, Senate Minority Leader John Braun, R-Centralia, said addressing the cost of living begins with decreasing the cost of goods, services and transportation.
“That’s the right way to make Washington livable for everybody around the state,” Braun said.
Restaurant owners and administrators testified against the bill, sharing concerns about rising operating costs that drive up prices for consumers.
“Our customers cannot support another price increase,” said Clayton Krueger of Farrelli’s Pizza, a family-owned pizza chain founded in Lacey that now has a dozen locations in Washington. “They do not have the appetite for it, and this bill would put our industry, our company and our employees in jeopardy.”
Katie Beeson spoke on behalf of the Washington Food Industry Association, which represents independent supermarkets, convenience stores and suppliers across the state. She warned that an increase to the minimum wage would lead to a direct increase in grocery prices.
As of Jan. 1, Seattle’s minimum wage is $20.76 an hour and the rule that previously allowed Seattle businesses with fewer than 500 employees to pay $17.25 an hour and make up the difference in tips no longer stands. Business owners say they are struggling to pay their employees in light of recent changes.
However, 99.3% of Seattle businesses survived a minimum wage increase in the city in 2015 said Jacob Vigdor, a professor of public policy and governance at the University of Washington who studied the minimum wage increase in Seattle. Employers compensated through a variety of means, including reducing the number of shifts, increasing prices and switching to counter services.
Regardless of what happens in the Legislature, employers should expect to pay more for labor in the coming years, according to Vigdor.
“Wages are going to be trending upwards in the labor market, with or without a minimum-wage increase,” he said.
