SEATTLE — The city of Seattle’s minimum wage is increasing to $20.76 per hour, beginning Jan. 1, 2025.
The Seattle Office of Labor Standards (OLS) announced the increase on Thursday as part of the annual increase required by the Minimum Wage Ordinance.
Minimum wage applies to all workers regardless of the employee’s immigration status, the office stated, and must be implemented by all large and small businesses.
The rate of $20.76 per hour is an increase from the current wage of $19.97 per hour.
Small restaurants with 500 employees or fewer have been able to implement a “tip credit.” This means for businesses who do not pay $2.72 per hour to an employee’s medical benefits or where employees earn at least $2.72 in tips per hour, the current minimum wage is $17.25 per hour.
This tip credit expires Jan. 1 next year, and small businesses will not be allowed to make up the minimum wage with tips or employees’ medical benefits.
Restaurant workers' wages will increase by over $3 per hour, the biggest hike since Seattle adopted a $15 an hour minimum wage a decade ago.
“Seattle has one of the highest minimum wages in the country – this is a good thing for workers, a good thing for our overall economy, and something we should take pride in,” said Seattle Mayor Bruce Harrell in a statement. “As one of the leading members of the original team who developed Seattle’s groundbreaking minimum wage legislation, my mission is the same now as it was then – ensuring Seattle is both a great place for workers and a great place for small businesses.”
While this will be a “significant change” for small businesses, Harrell said the city is committed to addressing challenges facing small restaurants in several areas.
“We want successful, prosperous, and vibrant small businesses and entrepreneurs in our city,” Harrell said, “and we are committed to addressing these challenges, keeping existing small businesses here in Seattle, and ensuring this is a place where anyone has the opportunity to start a small business and succeed.”
The increase reflects the rate of inflation for the Seattle, Tacoma and Bellevue area, according to the office.
Statewide, the Washington State Department of Labor & Industries (L&I) announced earlier this week that the state's minimum wage will raise to $16.66 an hour in 2025, a 2.35% increase. The increase will take effect Jan. 1, 2025.
Labor standards literature for workplaces with resources in dozens of languages will soon be sent to businesses from OLS.
Businesses who need compliance assistance with minimum wage can call 206-256-5297 or email business.laborstandards@seattle.gov. Workers with questions or complaints can call 206-256-5297 or email workers.laborstandards@seattle.gov.
