TRI-CITIES, Wash. – A big change is coming to Washington state pay.
An increase in Washington’s minimum wage will be the highest in the country after the start of the new year…up to more than 16 dollars an hour.
According to the Department of Labor and Industries, initiative 1433 was approved by voters in the state in 2016…now pushing Washington to more than double one neighboring state. Now, some business owners feel like they have to adjust.
Kara Vogt owns two small businesses and is preparing for the change.
“It’s definitely going to have an impact. I don’t pay my employees minimum wage; they’re all above,” said Vogt. “So, I will have to make small adjustments.”
The U.S. Department of Labor Statistics defines the consumer price index as the average price change consumers pay for goods and services over time. The CPI for all items rose 3.1 percent since November of last year. According to the Department of Labor and Industries, under state law, L-and-I calculates the wage increase based on the consumer price index for urban wage earners from August 2022 to August 2023.
Vogt said this isn’t the first time she’s dealt with this.
“It’s the nature of the beast we’re going to have to increase pricing, and again, it’s taking a look at each product that you sell and it is priced correctly,” said Vogt.
Last year, the state’s minimum wage increased by more than 8 percent from14.49 to 15.74 an hour.
Vogt tells me that with the wage increase, she has to look at the numbers.
“Over the next few weeks, I’m going to be evaluating a lot as far as our expenses,” said Vogt. “What’s moving? What are the higher items that move more.”
According to the Oregon Bureau of Labor and Industries, Oregon’s minimum wage rose in July this year from 13.50 to 14.20, whereas the Idaho Department of Labor says Idaho’s minimum wage is at the federal level. According to L and I, Washington State has the highest state minimum wage in the nation. The federal level is at seven dollars and 25 cents an hour.
“They made more money on their check but the cost of their gas, their food, living,” Vogt said. “Everything increased for them as well.”
According to the Washington Law Center, the cost of living rose just over 2 percent in 2023.
Vogt said with the recent increase she’s adjusting.
“Just finding a way to tweak to make menu items unique and that when you’re there, you’re being well cared for, and the people taking care of you are worth spending your time and money with,” she said.
Vogt tells me readjusting every year is stressful, but her employees are worth it.
“Yes, they’re employees,” Vogt said. “Yes, they work for me, but they also work with me. I can’t do this by myself. Being able to keep them employed to where they can meet their needs and not feel stressed financially is goal number one.”
L and I say the state minimum wage is for workers over 16 years old. For those between 14 and 15 years old, employers can pay them 85 percent of the minimum wage, which is just under 14 dollars an hour in 2024.
