The new year means another wage hike for Seattle workers and some workers have finally hit the $15 goal of the phased-in plan. For 2017, employees of businesses with more than 500 workers who don’t pay toward medical benefits now must earn at least $15 per hour, a $2 raise from 2016. While most Capitol Hill small business owners don’t have to worry yet about a Starbucks-level minimum wage, they’re still navigating yet another year of raises in the city’s multi-year phase-in process.

“Our fear is pricing people out of the neighborhood,” Meinert said. “… We don’t want to keep raising prices, but we have to.”

While other large employers who put dollars toward their workers’ medical benefits will be paying $13.50 per hour, a $1 increase from 2016, workers at small businesses — those with 500 or fewer employees — are now guaranteed $13 per hour, up $1 from 2016. Employers will either hit that by paying $13 per hour or by paying $11 hourly and either at least $2 per hour toward medical benefits or ensuring their employees get at least $2 hourly in tips.

In a half hour, the minimum wage rises across the state. In Seattle, tens of thousands of workers reach $15/hour. Happy New Year! pic.twitter.com/NdXZdxVdSJ

— Working Washington (@workingwa) January 1, 2017

That tip credit toward the $15 wage is scheduled to end by 2025. A small number of Seattle restaurants have already moved away from tips to service charges in part because of the rising minimum wage.

Some restaurant owners such as David Meinert, who is part of the ownership at a large family of businesses including Lost Lake Cafe, Comet Tavern, Grim’s and Big Mario’s, have regrets about how Seattle’s wage hike is being phased in. Continue reading →