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Home » The Journal's View: Initiative 1433 isn't the answer on minimum wage

The Journal's View: Initiative 1433 isn't the answer on minimum wage

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September 8, 2016
Staff Report

Initiative 1433, which would raise Washington state’s minimum wage and would require all employers to begin offering sick leave, has noble intentions—to boost the income of more than 730,000 low-income workers, lift families out of poverty, and grow the economy. 

Unfortunately, due to its myopic one-size-fits-all approach and its lack of exemptions, such as the sick leave component and the need for a training wage for new workers, it could do more harm than good as currently written.

Voters should reject it in the Nov. 8 general election and should prod the Legislature to find some thoughtful, common-sense middle ground that would be appropriate and fair for all areas of the state.

If passed, I-1433 would raise the statewide minimum wage—already one of the highest in the nation, at $9.47—to $13.50 per hour by 2020. The minimum wage would bump up to $11 this coming Jan. 1, $11.50 the following year, and $12 in 2019, before reaching the $13.50 mark at the start of the new decade. Thereafter, it again would be adjusted each year according to the rate of inflation, as it is now.

At the beginning of next year, along with the initial bump in minimum wage, employers also would be required to provide an hour of paid sick leave for every 40 hours worked, with employees having the ability to carry over to the following year up to 40 hours of sick leave.

As the Association of Washington Business warns, the combined impact of the initial minimum wage increase and sick leave requirements—instituted at once—“would be a costly shock wave to small employers,” which comprise the bulk of Spokane-area businesses.

Proponents contend the minimum wage increase will put an additional $600 in workers’ pockets every month, which in turn will add $2.5 billion to the economy annually. However, those estimates blithely ignore the likelihood that many businesses—particularly outside of the bustling Puget Sound area—would be forced to reduce staff, cut employee hours, and raise the prices they charge customers.

Particularly hard-hit would be service-sector jobs, which traditionally have provided an employment entry point for many younger, unskilled workers, and no doubt the ag sector, which represents a significant part of the economy in this part of the state, and the construction industry. 

Those various concerns, not surprisingly, have caused a host of business groups to come out against the initiative. They include the AWB, Washington Restaurant Association, Washington Farm Bureau, Association of General Contractors, Washington Bankers Association, and the Washington Affordable Housing Council. There’s clear indication among at least some of them, though, that they might be open to supporting a measure that raises the minimum wage in a more equitable way.

Evaluating all of I-1433’s pros and cons, it’s clear that the initiative is the wrong approach to improving worker compensation. The state Legislature can and should come up with something better. 

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