Although each state can legislate its own minimum wage per hour, cities can do it too, like Seattle, Washington, which will increase the base amount starting January 1, 2025, when the temporary tip credit for small businesses will expire, according to the law passed in 2014 .
Seattle Mayor Bruce Harrell released a statement on Thursday, October 4 declaration in the increase in the minimum wage, which applies regardless of the employee’s immigration status.
“Seattle has one of the highest minimum wages in the country – this is a good thing for workers, a good thing for our economy as a whole, and something we should be proud of. As one of the leading members of the original team that developed Seattle’s groundbreaking minimum wage legislation, my mission is the same now as it was then: ensure Seattle is a great place for workers and a great place for small businesses ”, it reads.
The Seattle Office of Labor Standards (OLS) explains that the city’s minimum wage increase reflects the inflation rate based on the Consumer Price Index for the Seattle Tacoma Bellevue area.
Seattle Mayor Bruce Harrell seeks to ensure the city is a great place to work (Photo: Bruce Harrell/ Instagram)
THE MINIMUM HOURLY WAGE IN SEATTLE DURING 2024
Seattle’s current minimum wage is US$19.97 the hour. For small employers (500 employees or fewer) who pay US$2.72 per hour for medical benefits and/or the employee earns US$2.72 per hour in tips, the payment is US$17.25 the minimum per hour.
- US$19.97 per hour: for small and large employers, that is, those who have 501 or more employees.
- US$17.25 per hour: for small employers (500 employees or less) who pay the employee US$2.72/hour for medical benefits and/or the employee earns US$2.72/hour in tips.
WHAT WILL BE THE MINIMUM HOURLY WAGE IN SEATTLE IN 2025?
The minimum hourly wage figure changed in the city of Seattle, because starting January 1, 2025, all companies, both large and small, will pay their employees $20.76 per hour.
“Small employers will no longer be able to count tips or payments from an employee’s health benefit plan toward the employee’s minimum compensation requirements under the Seattle Minimum Wage Ordinance.e”, indicates la Seattle Office of Labor Standards (OLS).
HOW IS THE LOCAL MINIMUM WAGE APPLIED?
A total of 30 states and several cities set their own minimum wage rates, which are higher than the federal one. If federal and local government minimum wages are different, the higher wage rate applies.
