The federal minimum wage goes up today. It's up $0.70/hour to $5.85/hour, and will rise again in two steps over the next two years to $7.25 per hour.
It's a non-event in Washington State, where the minimum wage, tied to annual inflation since the passage of I-688 in 1998, sits presently at $7.93. Between the state and federal standard, the law applies the one more favorable to the worker.
Small businesses rightly decry significant jumps in the minimum wage because it drives up the cost of products and services and the labor it takes to make or provide them, forcing cutbacks. AWB has historically contended spikes in the minimum wage generally hurt workers they're intended to protect.
Bad policy should not be encouraged just because good may incidentally come from it, but Washington small businesses may benefit from this action at the federal level. Especially in border towns, employers may see a small decrease in the cost advantage enjoyed by competitors in Idaho or Oregon, where labor costs are much less and slightly less, respectively.
One note of interest: All Washington employers must post the new federal minimum wage even though it technically doesn't apply in Washington. This is a US Department of Labor requirement. AWB consolidates all required federal and state employment postings into two posters, and sells the set for a nominal rate. Check into it here.
