washington business
They’re going to make the drive,
The statement only underscored
she added, because she will be forced
what was obvious to business leaders:
Various studies report conflicting conclusions
to raise prices to keep up with rising
A government mandate requiring paid
regarding the impact of a higher minimum wage,
expenses. In other words, a meatball
vacation time would impose yet anoth but a 2006 analysis by
sandwich will cost more in Pullman
er financial burden on employers.
economists David Neumark
than it will in Moscow, Idaho.
Another group of bills ostensibly
and William Wascher found that
“What are you going to do for
aimed at shutting down the “underbusinesses — Spokane, Clarkston,
ground economy” would have opened
85 percent of the best
Pullman, all of us border towns —
up good employers to a range of punishminimum wage studies
with $7.25 across the border?”
ments, including criminal prosecution.
Inslee replied: “I’m going to give
And Inslee proposed closing seven
you better consumers, who have a
tax exemptions to raise money for eduliving wage.”
cation — all of them rehashed proposals
Source: Washington Research Council
It wa s n ’t w h a t t h e a u d i e n c e
that failed before.
wanted to hear. Murmurs rumbled
Many of the bills failed to pass the
through the room and a flustered
Legislature this year, including the
Inslee admonished the crowd about being respectful. Brinkman
minimum wage increase, but that doesn’t mean the issues are
sat down, her head shaking.
going away.
“I was like, ‘Really?’” she said later. “I’m in a college town. You
Labor union leaders and others are taking the frustration that
can’t give me better consumers. It was the most ridiculous answer.
surfaced a few years ago during the Occupy Wall Street movement
He might as well have just not answered the question, in my mind.”
and redirecting it toward a more strategic campaign targeting
“income inequality.”
piling on business
Raising the minimum wage, an idea that polls well with the genThe exchange was one flashpoint during a legislative session that
eral public despite its questionable effectiveness, is a centerpiece
saw a number of bills targeting the business community.
of the campaign.
There were proposals to raise the minimum wage to $12 per
In SeaTac, voters narrowly approved a union-led effort to
hour, expand the city of Seattle’s paid sick leave requirement
require a $15 minimum wage for some airport-related jobs, and
statewide, and require most employers to give workers paid vacain Seattle elected officials are pushing to adopt the $15 minimum
tion time.
wage citywide. At the national level, President Obama is backing
Labor unions would have been allowed to bargain away the
a federal minimum wage hike to $10.10.
vacation requirement, however, and the bill’s sponsor intended
So it’s fair to assume that many of the other proposals will likely
that the state would have exempted itself from the paid vacation
come up again next year in the Legislature.
requirement by not applying it to public schools.
“It was never my intent to impose yet another financial burden
on the school system as we are trying to fund McCleary,” said Rep.
Gael Tarleton, D-Seattle.
“point to negative
employment effects.”
“We’re just not producing enough consumers
to grow the economy.”
— Gov. Jay Inslee, on why he wants to raise the minimum wage
washington state legislative leadership
Gov. Jay Inslee
Senate Majority Leader Senate Republican
Rodney Tom
Leader Mark Schoesler
28 association of washington business
Senate Minority Leader House Speaker
Sharon Nelson
Frank Chopp
House Minority L XY\