Washington State Minimum Wage (Initiative 1433)

Washington State Minimum Wage (Initiative 1433)

Resources, FAQ, and Help

I-1433 increased the minimum wage statewide to $11 per hour on Jan. 1, 2017 (with the exception of Seattle which went up to $15). It also institutes a new paid sick leave policy in 2018. Dealing with the changes can be daunting; we are here to help. If you don’t find the answers you need on this page, please contact us at (360)956-7279 or StephanieM@wahospitality.org.

FAQ 

All the questions we have heard from members thus far and the answers you need. From teen wage, service charges, local preemption and paid leave – it’s all in our FAQ

Frequently Asked Questions 

What are other businesses doing?

The best predictors of how businesses will handle the statewide minimum wage increase, are the results of what happened in Seattle. The University of Washington was hired to do a study of impacts. After a year they released their results, which you can read here. According to the report, Seattle businesses made these changes:

  • 62% raised prices on goods/services,
  • 30% added service charges or fees,
  • 30% reduced their number of employees, and
  • 11% left Seattle.

Here are examples of how some restaurants in Washington are handling tips and service charges. 

Department of Labor and Industries notices

Minimum Wage announcement (PDF)

Minimum Wage announcement (Spanish – PDF)

Required labor law posters (English and Spanish – PDF)

Service Charges

Implementing services charges is one solution that many members have asked about and considered. If you are considering a service charge after the passage of I-1433 please read our HERO manual page 35-37. These two pages offer in-depth answers to tricky questions and what the legal requirements are regarding service charges. The HERO manual is a free membership benefit. You can also read our article and FAQ on service charges (with examples).

Here are examples of how some restaurants in Washington are handling tips and service charges. 

Help!

Do you need to change your business model, reevaluate where you are going to cut costs, or find new solutions that will save you money? Your local area coordinator (AC) has answers. Visit our membership team page to locate the AC for your area. Your AC can access our Advisory Network that includes accounting help, legal resources, management professionals and more. Additional help beyond our free Advisory Network can be accessed at discounted rates. If you can’t locate an AC for your area call (360) 956-7279 for assistance.

Additional Info:

I-1433 Full Text of the Initiative

I-1433 Media

I-1433 Background

Seattle Minimum Wage

Tacoma Minimum Wage

Reports:

Washington Research Council Report on impacts of I-1433

University of Washington Study on impacts of Seattle minimum wage increase