How rising wages impacted Seattle

CNBC's Kate Rogers heads to Seattle to look at implications for businesses and workers as the minimum wage continues to rise, set to reach $15 an hour for all employers by 2021.
When Seattle began raising its minimum wage five years ago, local burger joint Dick’s Drive-In experienced an unintended effect.
Its employees opted to work fewer hours as their wages rose, a tall order in a tight labor market.
“We thought with higher wages it would be easier to get people to take more hours, but it’s been the opposite,” said Jasmine Donovan, president of Dick’s. She added that the company has had to raise prices for the first time in its history because of the cost of labor alone, whereas in the past, food costs drove such hikes.
Seattle’s law, which gradually increases its minimum wage to $15 an hour by 2021 from just over $9 an hour in 2014, is now at the forefront of a national debate over the impacts of progressive wage increases. It comes at a time when top Democratic presidential candidates like Bernie Sanders and Joe Biden are calling for a $15 per hour federal minimum wage as they try to appeal to working-class voters. The federal minimum wage is currently $7.25 an hour and has not been increased in over a decade.
“Seattle was catalytic to the entire national movement because what the Seattle City Council did by passing the law was show the entire nation that $15 was not a ridiculous demand that people were laughing at back in 2012, but an actual key piece of policy that allowed for working people all across that city to have more money in their pockets that they spent in their local neighborhoods and then grew the economy and local business as a result,” said Mary Kay Henry, president of the Service Employees International Union, which launched the Fight for $15 and a Union campaign.
Businesses like Dick’s have seen their costs go up. Dick’s pays above minimum wage, with some locations starting workers at $17 and $18 an hour, and most workers are students in their 20s. Benefits like 401(k) plans and health insurance are also available to workers regardless of the number of hours worked. But higher minimum wages citywide pressure employers to increase pay even if they are already above that threshold, in order to compete for talent.
Meanwhile, the Seattle law has been life changing for workers like Martin Johnson, who lobbied for higher pay with the advocacy group Working Washington. He works three minimum wage jobs - as a temporary cook on game days at the city’s stadiums, as a janitor at Costco on the overnight shift and as a handyman in his own small business. The raise brought with it more dignity for workers and boosted morale, he said.
“Instead of being paid $9 an hour, you’re getting $15 an hour to do the same work. You feel better about yourself - you feel appreciated,” Johnson, 54, said.
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[@hongtanke]

no discussion on the number of restaurants that have closed, the businesses that have left and the overall inability to have any type of living in the city. Taxes + idiotic financial policy has made me spend less money in town. Immediately drive outside city limits, everything is 20% cheaper. soooooooooooooo, not really helping when you consider realestate and rents are up 33%.

[@heavenlyblue]

$70 an hour comes out to about $150,000 a year - as a waiter???

[@teebone2157]

Look at real estate and cost of living in Seattle

[@8269wd]

I don't understand why waiters get paid so much. Cooks should get more, it's the harder job.

[@iamcosma7065]

Wei Dai and waiters still complain they don’t have a higher minimum wage. It’s like well yeah, you make tens of thousands in non taxable tips.

[@clear_gray_sky539]

Imagine what lunch costs their 😂

[@MauricXe]

That's misleading heh 70 dollars is probably during peak time. That probably only lasts for 1-4hrs a week (fridays and saturdays) The rest of a servers shift is slow and they may not work a full 8 hours. Clock in at 4:30. Dinner rush lasts between 5-9. Side work and clock out at around 9-10 unless you are closing

[@davidellis5141]

He rewards hard work with a more then fair wage. Good company to work for !

[@alpharenz1329]

Nah they get commission only 1099. No hourly. They do good they get paid if they do bad oops.

[@macioluko9484]

If minimum wage is so great, why stop at $15? Make it a cool $50/hr. If you've got a family working at $15/hr... minimum wage debate is the least of your worries.

[@amazonqueen5694]

they want to see you do good just never better then them

[@britsareweak]

Because it’s a MINIMUM WAGE, it’s a wage floor moron.

[@mikolamyrolovich7557]

Wow. My business and a lot of others are going under.

[@alpharenz1329]

@The Hot Box seriously how is the good. Own a business first then talk. List out all the expenses a business have, if you can't *SHUT UP*

[@alpharenz1329]

@The Hot Box also a business owner, I am actually doing better since but that is a different story. Also live in red state Florida. Still not a good look to wish any other business or person from going under be happy about it. It tough to run business and having employees relying on you for their livelihood.

[@madhatter734]

How is this a reasonable comparison on the raising of the minimum wage? Looking at a high end restaurant where the bill for a SINGLE diner was over $190 has NOTHING to do with the mom and pop shops and the franchises that do NOT have high end clientele. This story is nothing more then a strawman argument. If they REALLY want to do their reporting jobs how is this affecting the the merchants that serve poorer clients? And if you cannot answer this question then you havnt done your job

[@teebone2157]

From living in a tent to having an apartment. Nuff said

[@3deaster]

teebone 21 💯

[@michaelhathcoat7876]

He's working 3 jobs and still lives OUTSIDE of Seattle. Plus over a million people are projected to lose their job. Not mention the homeless situation that will continue to increase. "Nuff said" 🙄

[@TheM0joDoj0]

This story is more about the tenacity of entrepreneurs to find a way to thrive despite the detriments of a minimum wage hike. Seattle is also a unique city. Other restaurants that use the commission model may not find customers as eager to eat there if they aren't in a hot spot with affluent patrons.

[@1pgeorgy]

This leads to higher prices for goods and services to even greater automation and the bankruptcy of many small businesses. Small Business Doesn’t Have Super Profit, large corporations have super profits, Redistribution should begin with them, they must begin to share profits. And only then the turn should reach small and medium-sized businesses. Otherwise, you will not see the benefits of raising salaries, as prices will rise even more

[@shawn8847]

Cancel billionaires. Tax wall street. Train, educate and pay a living wage.

[@shawn8847]

@colonforsecs yed

[@Mantaracer]

Screw the establishment, UBI is the real answer for inequality! YANG2020

[@ericboneta5890]

15 an hr , 3 jobs and no life 🤔.

[@lillytaggert178]

Forced higher wages hurt those entering the work force and the seasoned employee. If I have to pay a high way I want someone with experience and excellent references. I also force out the older employee who has worked his way up the pay scale to start over with a new employee because I cannot afford both. A very large liberal employer who is bragging that they pay a living wage of $15 an hour is forcing out the employees that make a lot more than that and reducing hours to only have part-time employees. They are actually paying the full-time employees to quit. So, this “living wage” is actually less than they used to pay and they no longer will employ anyone full time. Meanwhile the left is cheering this employer for paying 15.00 an hour before the law forces them to do so. In addition, the cost of living will increase so that they will actually be poorer than before. Of course poorer people always support a big, bloated, expensive govt because they think they will be given something. They don’t seem to understand that the government is just giving them back less of their own money than they had to begin with. The government has no money of its own. Every penny is paid in by the taxpayer. The problem with the left is they don’t understand the outcome of their causes.

[@KoryHansen]

16.39 is Seattle's Minimum Wage up from last year's 16.00 www.seattle.gov/laborstandards/ordinances/minimum-wage

[@69ElChistoso]

I wish they would stop cherry picking the success stories and talk to the people who had to close their businesses due to the extra labor costs. Not everyone can adjust. But of course that would not help to further their libtard agenda. How many restaurant owners had to shutter their businesses for every one that managed to do better?

[@happiness9752]

No

[@69ElChistoso]

@@happiness9752 You're a man of many words, I see.

[@happiness9752]

@@69ElChistoso I don't need to be, it's very self explanatory

[@69ElChistoso]

@@happiness9752 Not really.

[@happiness9752]

@@69ElChistoso you'd be surprised

[@elsathedemonwolf1035]

Yeah that’s great but it still doesn’t bring people out of poverty WTF?

[@michaelhathcoat7876]

Change your profession, down size or move to a more affordable location. That simple.

[@iamcosma7065]

Minimum wage never does, it just raises the cost of goods and services. Failed policy.

[@elsathedemonwolf1035]

If a person can’t afford shelter transportation food where they wanna live it’s no good it doesn’t help anybody

[@jimferriter8813]

Pay the back of house $30/hour then

[@trollol2215]

Today 15, next u will need 20

[@joesullivan3400]

So they charge customers more.

[@eddywinata]

Unemployment in Seattle went down along with the national rate from 4% 5 years ago, to 2.5% . It seems that the homelessness problem has to do with the increase of population for new comers. But generally things seem to be improving in Seattle for the last five years.

[@eddywinata]

@colonforsecs Mind elaborating on your first point? not sure what you mean on your first sentence. You dont think its got anything to do with Amazon is it?

[@eddywinata]

@@dioxig9904 used to but been away for a while...

[@eddywinata]

@@dioxig9904 This is not the first time I am hearing this from Seattelites in the past few years. Hope things will get better soon there.

[@nineteeneightynine432]

Anyone think that what about the people making more than minimum wage if you hike up the wages the people who were doing 4 to 5 dollars over minimum wage will now be making minimum wage. So it'll help some and hurt others.

[@Lodgiefitness]

People in realestate... Will you take advantage of higher wages? I probably would if it was me.

[@ozymandias0303]

The answer is in the population increase. It's not the same set of people. Skilled workers saw opportunity and relocated. Unskilled ones got driven out of the market.

[@chimpspecialist]

So just hike ur prices. Nuff said!

[@chesterg.791]

Wow, cherry pick your examples much? Lol

[@amandaspear6148]

Are you here?

[@deepblueacc]

Wage increase equals inflation.

[@mangodave45]

Blah blah blah, but let the rich get richer, they buy houses in Italy, and workers here go without food, you imbecile.

[@lordimperatus5031]

@@mangodave45 so the solution is to inflate the economy, cause apartments, food, gas, utilities, insurance, and every other fiber of life to increase in turn? Unless you want to use dollars for your new wallpaper and TP, this is not the solution. More importantly, let’s discuss the effect it would have on the number of unemployed and homeless that it would lead to. Jobs will not be able to sustain a 15 wage. Millions more will be homeless and unemployed.

[@MVK_GS]

This was not at all a balanced report. It ran with an agenda; not real journalism.

[@georgemcfly3482]

Let's do a $65 minimum wage

[@nineteeneightynine432]

Why stop there $200 a hour or 1000 a hour.... smh life is a south park episode the past few years.

[@christinadg]

Hell No!

[@alpharenz1329]

So 1099 is the solution lmao! Guess what California did to 1099 and effed so bad they had to grant exceptions.

[@deepblueacc]

There must be an anker with a more sweeter voice.

[@tyalprince]

Where was the negatives? 😂

[@1pgeorgy]

Customers pay more

[@tyalprince]

@@1pgeorgy We do either way, its called inflation & the fed printing money

[@jdsmith4472]

Have you ever run a business?! Not so easy. There will be unintended consequences in that many young workers will find it difficult to get into the job market as they often do not have the skills to validate a $15/hr wage. Many employers will have to cut employees/hours as well. The money doesn't grow on trees.

[@michaelhathcoat7876]

Watch it again. Slow the speed down if you have too.

[@preppertrucker5736]

This is just another reason why aggressive capitalism dosent work long term. Humans are fundamentally greedy for the most part and minimum wage at $7.25 in 2020 is proof in in itself.....

[@Dispatcher813]

I used to work 2 jobs and on my days where I was off I worked double shift on the other job. I saved money and bought a box truck and a distributor contract grew the business bought another truck did the same. I know have 3 trucks and 3 employees. I spend most of my day at home in my office now stock trading always looking to grow. I never complained and cried about wages .My mind can't work that way. Crying for 15 dollar to me means you don't want very much. Oh did I mention I am a convicted felon for a simple drug charge didn't cry about that either. I owned it. Iam black also and don't cry about racism because Iam to busy making money.

[@YoniNadi]

Those workers who want a higher minimum wage can forget about it because of the coronavirus pandemic! For the workers who are earning above the minimum wage ; many of them will be out of work because of the coronavirus pandemic! Many jobs that pay $15 dollar an hour will be on the chopping block because of the coronavirus pandemic!

[@Blastfence1]

Move your business to Florida!

[@supermanprime1281]

Milk: $3×2=$6 Gasoline: $2×2=$4 Rent: $800×2=$1,600 House: $200k×2=$400k $15 minimum wage 40 hours weekly $15×40=$600 Weekly: $600 Biweekly: $1,200 Monthly: $2,400 Yearly: $28,800 That doesn't include tax State tax Social tax Federal tax Medicare tax

[@supermanprime1281]

They pass a minimum wage for 15 also

[@Saveminutess]

Pakistan India Bangladesh minimum wages are 300$ per month

[@1pgeorgy]

And?

[@Saveminutess]

What?

[@1pgeorgy]

@@Saveminutess why you think people in India and Bangladesh supost to make as much as Americans workers making