Residents of Seattle, Washington, are expressing concerns about tipping as the city’s minimum wage is set to increase to $20.76 an hour on January 1. The wage hike, among the highest in the United States, has prompted some residents to reconsider tipping practices, arguing that the increased hourly rate already provides significant compensation for workers.
Seattle’s ordinance mandates annual wage adjustments based on inflation, leading to the upcoming increase from the current rate of $19.97 an hour. The rise has caused unease among restaurant operators, with some predicting added financial strain. According to KTTH radio host Jason Rantz, the new rules will prohibit tips and benefits from being deducted from hourly wages, potentially adding $45,000 in monthly expenses for some businesses.
Restaurant worker Brandon Nyland highlighted the challenges facing establishments with slim profit margins, noting that many may adjust their menu prices to cover increased labor costs. Critics of such wage hikes argue they could adversely affect employment and the sustainability of small businesses.
In a related discussion, Breitbart News’s economics editor John Carney previously noted that President Joe Biden’s push for a federal minimum wage increase to $15 an hour, while intended to ensure a living wage, could have unintended consequences, such as reduced employment opportunities.
Workers in San Diego will see a modest pay increase as the city implements a new minimum wage starting January 1.
The hourly rate for minimum wage workers within city limits will rise from $16.85 to $17.25, reflecting an increase of nearly 50 cents. This adjustment is part of a 2016 ordinance aimed at aligning San Diego’s wage laws with state-level changes that set California on a path to a $15 minimum wage by 2022.
“This milestone reflects years of hard work and advocacy to put more money directly into the pockets of hardworking San Diegans,” San Diego Mayor Todd Gloria said in a release. “By raising the minimum wage, we are helping working families deal with the rising cost of living and better make ends meet.”
After reaching the $15 benchmark, both the state and city began making annual adjustments tied to the national Consumer Price Index (CPI). While California caps these yearly increases at 3.5%, San Diego’s ordinance allows for unrestricted adjustments, enabling its minimum wage to outpace the state’s.
