Title
Discussion of a Process to Consider a Locally Mandated Minimum Wage in Olympia
Recommended Action
Committee Recommendation:
Discuss possible process steps. This item was referred to the Finance Committee in 2018.
City Manager Recommendation:
Discuss process options to understand the issues, pros and cons of a locally mandated minimum wage.
Report
Issue:
Whether to recommend a process for the City Council to consider a locally mandated minimum wage.
Staff Contact:
Steve Hall, City Manager, 360.753.8370
Mike Reid, Director of Economic Development, 360.753.8591
Presenter(s):
Mike Reid, Director of Economic Development
Steve Hall, City Manager
Background and Analysis:
This is a very complex issue with many facets. To create good policy will take considerable research, public engagement and listening to avoid unintended consequences for employees, small businesses, not for profit groups and the overall the community.
In 2016, Washington State voters approved an increase in the State minimum wage that will reach $13.50 per hour by January 2020 for most workers in the State.
Nevertheless, the costs of housing, health care and other expenses make it difficult for minimum wage earners to make ends meet even when they are working full time.
At the same time, most of Olympia's large and medium employers; health care, schools, the State of Washington, other governments, financial institutions already pay $15.00 per hour and more.
However, Olympia's job employer mix is unique. After subtracting government, schools and health care who already exceed the minimum wage, most of Olympia's remaining employers are small and locally owned.
The biggest impact of increasing the minimum wage could come in the areas of retail and restaurants, which are already very competitive sectors of the local economy. This would leave many of these small businesses operating on thin margins. For example, recent closures of the 5th Avenue sandwich shop and Ramblin Jacks point ...
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