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‘New approach’ — Hollingsworth backs off minimum wage tip credit proposal

Saying she will seek a “new approach” on the legislation, District 3 representative Joy Hollingsworth announced Friday she is backing off her proposal to permanently extend a tip credit put in place ten years ago to protect the city’s small businesses during Seattle’s phase-in of a higher minimum wage tied to inflation.

CHS reported Tuesday on the legislation proposed by Hollingsworth that would have responded to the coming 2025 end of the small business tip credit with a new plan to create a permanent credit by lowering the amount at which inflation would increase wages for small businesses.

A statement from Hollingsworth did not specify why she was backing off her sponsored legislation but said her proposal was “never an end, but the beginning of a process.”

“Seattle’s small, neighborhood restaurants help define our diverse communities, provide critical jobs and offer opportunities for career advancement for workers and entrepreneurs,” Hollingsworth said in a statement sent from her office heading into the weekend. “It is in the spirit of helping these restaurants survive lingering pandemic disruption and increased costs that I began this conversation—equal with the commitment to advance wages and the rights of all workers in our city.”

“My primary goal has always been to help create an environment to put the most money in workers (sic) pockets,” Hollingsworth said.

The proposal had met a quick swirl of criticism for the first-year council member with especially heated rebuke coming from her predecessor.

Kshama Sawant, who has held up the wage victory as one of her biggest victories in a decade on the city council before deciding to step aside last year, blasted the Hollingsworth proposal as an attack on “the landmark $15/hour minimum wage law that has lifted hundreds of thousands workers out of poverty, benefiting women and people of color in particular.”

More important to Hollingsworth has likely been the opposition from labor including groups like MLK Labor Council whose members have spoken out against extending the credit.

Hollingsworth’s office says the council member is looking forward “to the next few weeks to focus on working with stakeholders, including small business owners, labor unions, and our Mayor’s Office to find a balanced solution.”

“I’m eager for the work that lies ahead,” Hollingsworth said.

 

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Ok now
1 year ago

So tipped employees will continue to earn minimum wage, i.e. if customers fail to tip the employer will be required to make up the difference between the base pay and minimum wage.

If the tipped employees earn more though they receive the tips and additionally another $17?

Googling the history of the this measure, it was originally sold as a way to end tipping and have employers pay a living wage. Which obviously has not happened.

The city council should meet the parties halfway, if a business allows tipping then set a lower base pay against the maximum percentage a business will accept as a tip, with the business continuing to make up the difference. All employees should get a share of the tips balanced across the work week.

As for Sawant’s “lifted hundreds of thousands”?

That would is a vastly exaggerated percentage of the number of working adults in the city of Seattle. Lets call BS on that.

Boris
1 year ago
Reply to  Ok now

Yes and yes.

Derek
1 year ago
Reply to  Ok now

Sawant was so much better than this clown. Get real. Sawant stood up for renters and workers’ rights and walked the walk. Joy doesn’t care about anything but her weed business’s bottom line. She’s such a joke.

1 year ago
Reply to  Derek

Sawant was a clown too. She shat on small business owners and homeowners in this district.

Smoothtooperate
1 year ago
Reply to  emeraldDreams

Right to work in disquise.

Corporations are people too.
Money is speech
Speech is power

So govt. pouring gas on that for business owners is incredibly disingenuous. Especially if it appears to be self dealing.
It was billed and voted on as temporary. Let the people vote for it to be permanent. Right?

Nope..>Anything temporary can be clawed back “Essential workers” or made permanent. Extend it. Once they get that initial vote? They quickly go where they wanted to go all along.

RWK
1 year ago
Reply to  Derek

I will just point out that Joy, in taking another look at her proposal on this issue, has just taken an anti-business stance. Not very great evidence that she is always pro-business!

Smoothtooperate
1 year ago
Reply to  RWK

That’s political 101 pal.

You are for something. Until you are not. Usually involving votes appearing or disappearing. Support gaining or vaporising.

Never forget who these creatures are. They are dangerous in the wild.

Smoothtooperate
1 year ago
Reply to  Derek

That’s about it. If it helps someone? Great! However? Taxpayers are on the hook. Oil companies are shameful. Polluters are shameful. Look at LA. A shithole state perennially at that. Doesn’t every pipeline in “mercah” go through LA. to their port??? It seems like it.

All them folks pay an average 2% tax. Oil companies. 2% average. Some pay no taxes(0% – refund to infinity or less) and makes billions playing money games without producing anything but suffering to the people at the bottom in a 40+ years of flat economy, like GE. Not a polluter. They make stuff that polluted America a lot though. Like jet engines.

It’s been a massacre on the American labor force of forced labor do to a labor glut. AKA the boomers and “greatest” ‘mercahns. Boomers were the last generation that did better than the one before it. They also happen to be the biggest voter block in history. Voted for wealth incumbency. They fought against themselves to get the lowest wages possible and put it into law aka “right to work”. The same who think Cheetolini allowed us to say “Christmas” again!

That right there is the ignorance and lack of critical thinking and common sense on bright display. Yet calling them on it offends them. Facts hurt sometimes. That’s why they avoid some facts. Makes it tough to look in the mirror.

It’ll be a blue tsunami in November.

Stumpy
1 year ago
Reply to  Derek

Deep breaths Derek. Deep breaths.

Smoothtooperate
1 year ago
Reply to  Ok now

“Googling the history of the this measure, it was originally sold as a way to end tipping and have employers pay a living wage. Which obviously has not happened.”

I did!

I’ll be happy to explain my position.

My understandings about tipping. A very confusing concept and even offensive in some countries.

It is really simple actually. All you need to know is pay the bill. No “gratuity” built in unless it’s a large party. You are essentially serving one person hoping for a tip. Only it’s 8 people and they sit in the “Big room” at the back farthest from the kitchen, bathrooms, bar etc. You get your monies worth w/o having to worry about anything else. Usually more than one server is helping as well. So that’s standard. That’s covered. We are not talking about those tips.

It’s the ones they flash at the paypoint. A cup of coffee is 8 bucks with a 20% tip. I went to a bar and a $7 16 ounce craft tap + 25% minimum. 30% and 35% were the other 2 options. Never saw that before. It’s usually 15-20-25% around here. That is the cost of living owners should pay and dump it on the labor and customer. Depending on generosity to have a roof that’s not your car is absurd. That is “charity” to business.

Until Reagan? There was a safety net AND living wages. The democrats were in charge for decades. Until Bonzo and Clinton. Business and the wealthy paid their fair share and made great money. Many times more than labor. It is corporate welfare in disquiet.

The Boomers are the last generation to do better than the one before it. Been downhill for us since. Republican rule and “Reagan Democrats”. Trickled on economics on steroids. Smash unions. Create an enormous labor force by force. You now must “work first” to eat. Not live in a car.

So Walmart pays the absolute minimum. Everyone else follows suit. Any service worker. Tipped or not. Raising EVERYONE’S taxes. So they are paid less AND taxed more! Nice deal if you can get it. It’s impossible for one group to fail. Ever. Bailouts and deregulation are now part of corporate playbooks. Baked in. When Americans get a stimi check? The hate was unbelievable. Even though corporations were raising prices for no reason other than their made up playbook. If this restaurant dies? The neighborhood will never recover. 15 people lost their jobs. We need a bailout to survive or the labor gets it hostage tactics to maintain that gravy train.

Bars want to pay $2.15 an hour and flat wages for 40+ years. Welfare makes up the rest in “assistance”. NOT a living wage. It’s assistance. It’s survival. Not a luxury. Gee, now they pay what for minimum wages??? and omg! STILL IN BUSINESS! IT’S A MIRACLES and MIRACLES! The record economy and no recession during and after covid. All Liberal economics and tenure. The alt right christian nationalist march to the third reich is self evident. The stats are stark and sobering and everyone is hearing about it.

So whine about the last council member? She’s only one person. Also? She’s GONE! AND? Read the economic data. Hmmm…25% raise for cops. How is it Kashama couldn’t stop that? She’s omnipotent like your god right?

Pay a living wage. No more corporate welfare for life. Just like “work first”. let’s see your ledger and I’ll find waste, fraud and abuse I GUARANTEE IT! Greed is a common find in your situations. Mismanagement on a colossal scale as well. Welfare for businesses that do a crummy job and dump their responsibilities on others and cry for more and permanently.

Business is job creators? ANYONE can create a job. Window washing at stop lights. Unless you got 50-100 to skim off of? You can’t make a living.
Labor is essential to create profit. So taking the whip as you whine and cry for more is awfully telling of a person’s character. I can tell people things about themselves that they’d deny because truth hurts. How do you think FBI profile experts make the big bucks? Think about it.

So it angers me deeply that people are irresponsible of their own actions. Especially if it deeply favors that bully. Labor is not the bully. They are the bullied. And as all bullies are? W/o their friends they are nothing. It’s all a facade. It endangers lives. Ya see the capitol news in the last decade? A funny thing happened to America for the first time! You should read about it. That’s inequality at the govts. doorstep. A twisted ideology. A clear and present danger to America. A terrorist cell in America, born in America. Much like the KKK.

This little issue about tips is not the story. It’s false 100%. Pay the bill. Tip for exceptional service. No need to worry about welfare burden on the tax system. Hooters waitresses make more than IHOP or “small bar” establishments. I wunder why? Hmmmm…There’s something magical going on. I can’t put my finger in it. But they are sooper profitable. They must have a magic secret. AND? They get permanent corporate welfare!

Omg! I am going to faint. I bet it feels like winning both prize packages for being within $100 like the Price is Right!…and getting $500 to start with. So only $600 is needed to win instead of the $100 threshold for the “poors”.

“The comfort of the wealth is dependant upon and abundance of the poor”

Voltaire.

Watch “Requiem for America” documentary. It’s about 50 minutes regular speed which I recommend because the narrations’ timing brings richness to the production. Not put you to sleep. The art is stunning…All done with money, American bills. He’s a famous artist.

So I call BS on you and your ilk until they change my mind.

piker
1 year ago

Prepare yourselves for more localized inflation and a great thinning out of small, local bars and restaurants.

Piner
1 year ago
Reply to  piker

Seattle’s minimum wage has made it way more expensive for minimum and non-minimum wage earners to dine out in the neighborhood. Even if you want to go out, the hours are now very limited because businesses can only afford to keep their doors open during peak hours. If the council doesn’t have the courage to intervene, this will be the nail in the coffin for many Capitol Hill small businesses that are holding on by a thread.

New small business are not going to want to move into an environment with the highest server wages in the country, one of the highest levels of vandalism, and no police, and thus boarded up, vacant spaces will multiply. Pike Pine is particularly going to suffer with the new plan to push repeat offender/drug dealers/criminals out of downtown and the international district. Why isn’t Pike Pine and Broadway on this list of hot spots? The drug scene is going to move up here even more than it already has. We need leadership from Hollingsworth on protecting small business and cracking down on drugs and lawlessness in D3. She shows signs of wanting to do this, but so far she has been too timid to take on the vocal minority of sawantists. The neighborhood business districts are in crisis.

Smoothtooperate
1 year ago
Reply to  Piner

“Seattle’s minimum wage has made it way more expensive for minimum and non-minimum wage earners to dine out in the neighborhood.”

Eating out for the poor has always been an issue. Demanding peoples generosity at all costs so you get your dollar menu back is telling of you as a person. Everyone on a level playing field is democracy. Everyone has a shot at the dream. Not forced to work dead end jobs and forced onto welfare via corporate greed.

Smoothtooperate
1 year ago

“offer opportunities for career advancement for workers and entrepreneurs,”

THAT is a lie. It’s a dead end job below living wage and more fish for greedy businesses instead of a pole and bait. Self dealing is a bad look.

““My primary goal has always been to help create an environment to put the most money in workers pockets,” Hollingsworth said.”

THAT is a lie. Servers make more when they are paid more. Business makes more when 40+ years flat wages is the normal. I think corporate greed at EVERY level is radically out of step with labors needs.

Labor WAS ESSENTIAL. Now? We took the Covid bribes away and said “suck it up buttercup” and threatened retaliation in layoffs yada yada. That did not happen. Will never happen. If you can not run a business? Get a job. If you can? Run a business. Free money is over. We are at full employment. TRUST me. The well run restaurants will be hiring your labor. Gladly. Why? It is impossible to find staff.

A “Right to work” plan in disguise is EXACTLY what I said would happen. Greedy business owners pampered for 1/2 a century are all up in arms?

Wow…I rest my case.

Tim
1 year ago

A+ I actually read your opinion.

Smoothtooperate
1 year ago
Reply to  Tim

Oh, thanks man…Appreciate that.
I have a lot to say…lol
My Mom begged me to write a book about my life. If I’d not failed English for years. Not joking, I might have a clue how to.

Really kind of you. :O)

Boris
1 year ago

Sometimes I wonder if you are actually just some AI bot, what with all the name calling and hollow accusations of dishonesty.

Smoothtooperate
1 year ago
Reply to  Boris

Naw…Just a comedian in my day job.
Name calling” That NEVER happens. And if it did? I’d apologize.
my “hollow accusations of dishonesty”? I said “A bad look”. Totally different. I didn’t call anyone dishonest. GREEDY was the term I used.

My mom taught me that a half truth is a lie. Also? When presented with the truth? “Waddabouts” and “nit picking” wins nothing in a real conversation. THAT is what you have described here.
Also? A complete lack of comprehension…

How do I know?

I have these EXACT same conversations with everyone. I write like I talk and if that offends you I am not sorry. Someone misunderstanding words is not my problem once I explain.

Calling me to blame, misinformed, mean spirited, dumb, idiot, snarky, glib, not serious, no knothing, bully, deranged, uncaring, out of touch…I could go on and on. I have prolly hurd most of the heard. It’s always misinformation and lack of comprehension. EVERY TIME.

Not agreeing with me is one thing. But “calling me names” is not that. “Boomer” is a huge trigger. It’s simply a generation 20 years like ALL OTHERS. Yet? Boomer take everything personal if they are a part of the negative facts.

Unless they are a well informed. Strong comprehension and character, always with a desire to learn more. That’d be my category. I was born in 1965 in case anyone ever wunders.
Jan 1st 1965. When people find a gen X member and says “Take me to your leader”? That’s me. That’s the wise man on top of the mountain.

I appreciate you speaking out though. I do. It helps me clarify. I like that. I also like being wrong. I never take not knowing the facts personally other that to say “how’d I miss that”. and move on. Dwelling is bad for your health. As well as trying to control things you can’t. It literally takes time off your lifespan.

Because I do appreciate you. I am gonna reveal the key to a happy life.

“Be your own best company”

Stumpy
1 year ago
Reply to  Boris

I have wondered the same about you!

Derek
1 year ago

Bullying works! 👍👍 so proud of our district standing up to this anti-labor class buffoon.

Smoothtooperate
1 year ago
Reply to  Derek

Actually..The bully failed to ram it down our throats.

Actual small business
1 year ago

Government shouldn’t be incentivizing tipping. If businesses want to do tipping, that’s their choice, but they shouldn’t be rewarded for it by allowing them to pay the workers less than minimum wage.

And it’s not a “credit” if the workers get paid less. It’s just taking money out of local workers’ pockets and giving it to wealthy business owners, who can then pay less than minimum wage by putting the burden on consumers to tip.

Also, how is 500 employees a “small business”? That’s pretty much a tycoon.

SeattleGeek
1 year ago

I’m embarrassed to be represented by Joy. Hell, I’m embarrassed FOR Joy.

A finalized bill presented to the city council is NOT the beginning of a process. It’s the end. It’s you saying “this is the best path forward.” The beginning of a process is proposing a bill to conduct a Seattle study. So, either Joy is lying through her fucking teeth or she is so goddamned stupid that she should not be on the city council in the first place. And, if I am being honest, I think she is largely just stupid and reactive and does things without thinking (like voting to give cops a raise or voting to install spy cameras on the street).

But, she also lies a lot. “My primary goal has always been to help create an environment to put the most money in workers (sic) pockets.” How was lowering the minimum wage putting the most money in workers’ pockets? ELI5.

Say what you want about Sawant ignoring the district’s needs by going after systemic issues, but Joy quickly proved to be god awful for the city. And she’s only been in office for 7 months!

James
1 year ago
Reply to  SeattleGeek

Well said. The conservative council is falling apart. They needed odd year elections and massive Amazon money boost just to get elected and now their asses are being shown. I hope this makes a higher voter turnout. Let’s start by getting Woo out the door and electing Alexis Rinck.

Stumpy
1 year ago
Reply to  SeattleGeek

Deep breaths might help….

Smoothtooperate
1 year ago
Reply to  Stumpy

Or maybe sane policies?

Stumpy
1 year ago

Yes. Sane policies would be great unlike what we got from the previous city council. Could not agree with you more.

SeattleGeek
1 year ago
Reply to  Stumpy

Great comeback, weirdo.

Smoothtooperate
1 year ago
Reply to  SeattleGeek

“weirdo” Depicting a Alt right politician

Smoothtooperate
1 year ago
Reply to  SeattleGeek

It’s the ‘ol “waddabout”. Including running against a person not in the race.
That’s why the social agenda smoke screen…Then slip it in there under the radar. Gotta wait till voters interest wanes.

 “So, either Joy is lying through her fucking teeth”

Yes.

IJohnson
1 year ago

How many restaurants do you think could remain in business while paying their employees a “living wage” of $28-$35 per hour? If the employee has kids is the employer expected to raise that wage to $40-$50 per hour? What would it cost to eat lunch in a place with these labor costs, and could anyone not making at least $45 per hour afford to eat there? Does that matter? Perhaps eating out should be only for those still employed at high wage? (until AI ends their job.)

Speaking of AI and automation, have you noticed how many restaurants are now adding self checkout and order kiosks that ask the customer to work for free rather than paying an employee $20 per hour plus benefits? Is it stupid to think ahead to how businesses will an accommodate, and look at the predicted restaurant closures and jobs lost to automation? That is one of the things Joy is doing. She is not stupid.

Would you rather wait tables for a flat minimum wage + 20% surcharge on the tabs, working out to about $24- $28 per hour, or work for $17 per hour and make $39-100 per hour in tips, as many bartenders and servers do in high end restaurants? I know servers who have been decimated by the loss of tips and the change to a flat hourly. They can no longer afford to keep their homes or pay a mortgage.

If the council had known that food would be in some cases ten times the cost it was 10 years ago, that utilities would sky rocket and rents would double (for restaurants as well as everybody else) would they have proposed infinite increases in wages to match? Or might someone have thought a bit about how that could feed an inflationary spiral that never ends?

This link is from mynorthwest— but it is a direct link to a study from the UW. The study is not right wing propaganda. I suggest people read it. Inequality did not improve with minimum wage: https://mynorthwest.com/wp-content/uploads/2021/12/Long_Economic-Inquiry-202174484.pdf

Smoothtooperate
1 year ago
Reply to  IJohnson

“How many restaurants do you think could remain in business while paying their employees a “living wage” of $28-$35 per hour?”

ALL OF THEM! On a level playfield.
Can’t run a business? Get a job. Odd how Dick’s has always paid living wages and great benefits like a TRUE flex able schedule and money for school. They help you advance so you do not work a dead-end job.

More welfare for corporate entities? Ummm…okay…That sounds equal.

Smoothtooperate
1 year ago
Reply to  IJohnson

This is plain ignorant. Mean spirited and out of touch? Or? A lame excuse only a Neanderthal would believe?

“If the employee has kids is the employer expected to raise that wage to $40-$50 per hour?”

Strawman waddbouts and other misdirection tactics is old and worn. A thein playbook.

sorry…corporate welfare and 40+ years of flat wages is why our infrastructure is a D- and poverty/wealth distribution is never been more of a crisis. A threat to national security.

It’s about easy profits w/o real competition.