MLK Labor Statement on Minimum Wage for Tipped Worker

August 2, 2024

Coalition of Unions and Worker Organizations Vow to Continue Fighting to Protect Seattle’s Minimum Wage

This afternoon Seattle City Councilmember Joy Hollingsworth announced she is withdrawing a proposed ordinance that would have created a permanent sub-minimum wage for tens of thousands of tipped workers. This comes after significant opposition from a coalition of more than 40 worker and community organizations who spoke against the legislation.

Seattle’s landmark minimum wage law was passed unanimously by the City Council 10 years ago after a compromise between the business and labor community. The agreement ensured all workers would receive the inflation-adjusted minimum wage while allowing additional time for smaller businesses to see the benefits of increased consumer demand. In recent months, business groups lobbied the city council to establish a permanent sub-minimum wage.

With the ordinance withdrawn, Seattle’s minimum wage law will provide a long-awaited raise to tens of thousands of workers next year, providing a major influx of consumer spending that will help local businesses. Labor and community organizations are happy to participate in a stakeholder process to find ways for the city to support small businesses struggling with inflation, commercial rents, and predatory competition from large chains.

“The Labor community thanks Councilmember Hollingsworth for withdrawing legislation to create a permanent sub-minimum wage for tipped workers. Since Seattle’s landmark minimum wage law was passed a decade ago, we have maintained one of the strongest local economies in the nation because increased worker pay has helped people keep up with the rising cost of living. Still, no one could have predicted how inflation and the pandemic would impact working people. The affordability crisis has worsened, and far too many workers struggle to make ends meet. The last thing we need is to cut people’s hard-earned pay. Unions look forward to a stakeholder process that finds ways to support small businesses without cuts to workers pay,” said Katie Garrow, Executive Secretary-Treasurer of MLK Labor.