‘Felt that pushback’: Seattle’s 2026 $21.30 minimum wage worries hospitality industry

(The Center Square) – Much to the chagrin of some employers in the city, Seattle’s minimum wage is set to increase to $21.30 per hour on Jan. 1, 2026, the Seattle Office Labor Standards announced on Tuesday. The new rate, based on the Seattle-Tacoma-Bellevue Area Consumer Price Index, applies to all employers in the city.

The $21.30 minimum wage in 2026 is 2.6% more than the city’s current rate of $20.76 per hour, which is already among the highest in the state.

In a statement on Wednesday, Seattle Mayor Bruce Harrell said the minimum wage increase showcases the city’s continuing commitment to “building a city where all workers are treated with the respect and dignity that they deserve.”

Washington Hospitality Association President and CEO Anthony Anton doesn’t share Harrell’s optimistic appraisal of the Emerald City’s impending minimum wage hike.

Seattle restaurants are already being squeezed from all sides, he said, even before the minimum wage increase announcement, as operation costs are up and the city continues to add pressure.

- Advertisement -

“Normally when costs go up, you dip into your margins. Well, Washington has one of the lowest profit margins in the country, down to 1.5%,” Anton told The Center Square in a phone call. “So, for a $1 million restaurant, you’re making about $16,000 a year.”

This year, Seattle raised its minimum wage by more than $3 and eliminated the option for employers to use a $2.72 per hour tip or medical benefits credit.

In response, many Seattle restaurants added fees to make up for increased labor costs. Anton said the higher prices led to more customers holding back from purchasing at Seattle businesses.

“We have really felt that pushback in 2024 and 2025 of customers saying, ‘I can’t believe what it costs a family of three or four to go out anymore,’” Anton said. “And yet the operators are making less money than ever and are charging more than ever.”

In Tukwila, the highest minimum wage rate for 2026 will be $21.65 per hour. However, some businesses are exempt and must pay the statewide minimum wage of $17.13 per hour, effective beginning next year.

Seattle Office of Labor Standards Director Steven Marchese said his office will “continue to offer support to help businesses prepare for the increase so they can continue to pay their employees accurately and ensure workplace rights are upheld.”

spot_img
spot_img

Hot this week

Health care company agrees to pay $22.5 million to settle claims of over billing

A health care company agreed to pay nearly $22.5...

African and Caribbean Nations Call for Reparations for Slave Trade, Propose Global Fund

Nations across Africa and the Caribbean, deeply impacted by...

Sports betting expert offers advice on paying taxes for gambling winnings

(The Center Square) – Tax season is underway, and...

Business association ‘disappointed’ by WA L&I’s proposed workers comp rate hike

(The Center Square) – The Association of Washington Business...

Sports betting bill still alive in Georgia House

(The Center Square) – A bill that would allow...

Senator criticizes non-citizen police law after Hanover Park officer arrest

(The Center Square) – A state senator is weighing...

Florida’s fulfillment near; Duffy says he’ll pull $160M from California

(The Center Square) – Florida’s wishes for federal transportation...

Exclusive: Cruz introduces bill to expedite U.S. LNG exports

U.S. Sen. Ted Cruz, R-Texas, has reintroduced yet another...

Americans on Social Security will see 2.8% benefits boost next year

More than 70 million Americans receiving Social Security benefits...

Soul Eaters: The Hidden History Of Medicinal Cannibalism In Europe

In Early Modern Europe, the question wasn’t ‘should you...

WATCH: Closed Navy base in Puerto Rico could play role in fight against narco terrorists

As the Trump administration continues to target suspected narco...

Food Fight Pt.2: Demands For A Healthier Future

The modern food industry has turned our diets into...

Poll: Most voters against federal govt controlling education

A vast majority of Americans do not believe the...

More like this
Related

Senator criticizes non-citizen police law after Hanover Park officer arrest

(The Center Square) – A state senator is weighing...

Florida’s fulfillment near; Duffy says he’ll pull $160M from California

(The Center Square) – Florida’s wishes for federal transportation...

Exclusive: Cruz introduces bill to expedite U.S. LNG exports

U.S. Sen. Ted Cruz, R-Texas, has reintroduced yet another...

Americans on Social Security will see 2.8% benefits boost next year

More than 70 million Americans receiving Social Security benefits...