Unknowns abound regarding the short and long term effects of Seattle’s $15 minimum wage—that reality is perhaps the scariest aspect of the new law. But, despite all the unknowns, discernable consequences do exist. How? The small experiment that has become the City of Sea-Tac. So, without further ado, here are the five known side-effects of the $15 minimum wage as experienced in Sea-Tac.
- Business owners/managers take on more work responsibilities rather than hire new employees.
- Businesses lay off workers, reduce employee hours, or eliminate hiring plans.
- Businesses cut employee benefits.
- A “living-wage surcharge” is added to bills/area parking.
- Prices of goods and services offered by businesses increase.
According to a survey conducted by the Washington Restaurant Association, Seattle based restaurant owners are already bracing for the impact of the $15 minimum wage with plans to raise prices, lay-off workers and reduce employee hours—among other side-effects.
The Washington Restaurant Association (“Full” is “full service restaurant”, “QSR” is quick service restaurant),
Survey respondents were asked an open-ended question, “What are your five most likely business changes if Seattle adopts a $15 minimum wage? Although the question was open-ended, the ten responses below were repeated often enough to equal more than ten of the answers in both the full service and quick service restaurant categories. These results were as follows:
The survey concludes its findings with the “sobering observation” that 80% of “full service respondents said they would either lay off employees, close their business, declare bankruptcy or close a location.”
