‘Finally’ – Seattle workers react to new $20.76 minimum wage rate

Five things to know with last step of ten-year-long minimum wage phase-in set to take effect on January 1, 2025 

Seattle’s historic minimum wage law is set to finally take full effect on January 1, 2025. Ten years after the law passed, the city’s minimum wage will reach $20.76, without any special subminimum wage rate for tipped workers.

Workers are reacting to the city's long-awaited minimum wage increase:

  • “Working 60+ hours a week at two jobs isn't enough to keep me from living from paycheck to paycheck because I'm supporting my wife and daughter on $17.25/hr, and tips are almost always paid out unevenly. The minimum wage increase will give me the opportunity to only work one job, which will significantly increase the amount of time I can spend with my daughter.” – Jay, Restaurant Server in Capitol Hill

  • “My life is about going to work, costly uninsured medical appointments, and going home and doing rehab exercises. This minimum wage increase will help me keep up with my rising health care costs.” – Angeline, Caterer and Cashier in Queen Anne

  • “Restaurant work is really hard. We work long hours on our feet, often in extreme heat. And we get paid very little. I’m currently paying nearly 50% of my paycheck toward rent. Some months I have to spend more money than I make. A lot of my peers are in the same position. Finally, this raise will give us breathing room so we can afford our groceries, health insurance, and other essentials.” – Sean Case, Line Cook in U-District

  • “Un aumento me gustó porque la vida es muy dura. Con el salario actual es difícil poder vivir y ahorrar. Yo pienso que merecemos un salario justo.” // “I like the raise because life is very hard. With the current pay it is difficult to live and save. I think we deserve a fair wage.” – Bulmaro, Line Cook in South Seattle

  • Tips and hours are inconsistent in the restaurant industry, and we deserve a real minimum wage that increases with the cost of living. Minimum wage is for everyone!” – Kate Flyger, Server and Bartender in Capitol Hill

Five things to know about the new minimum wage rate:

  1. The wage rate announced today is exactly what has always been planned in the law. It has always been anticipated that the minimum wage in 2025 will be the equivalent of $15/hour in 2017 dollars, adjusted for inflation. 

  2. Seattle workers can barely afford to live in the city. Fair market rent on a studio apartment in the Seattle metro area is $2,238/month — more than half the total income of a full-time worker getting paid minimum wage. 

  3. Income inequality has grown since the pandemic. As the Seattle Times recently reported, “the 20% of Seattle households with the highest income earned about 21 times more in 2023 than the 20% with the lowest income” 

  4. The latest research from University of California researchers finds that higher wages create jobs — and the higher you raise wages, the more jobs you create. That’s because when more people have more money, that means more customers for more businesses.

  5. Higher-than expected inflation has dramatically lowered the real value of the phase-in rates. In fact, many restaurant workers are being paid less this year in inflation-adjusted dollars than in 2021.

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Subminimum wage-a-vu