Minimum wage increases

AN ACT Relating to stabilizing minimum wage volatility by linking 1
future increases to the federal minimum wage; amending RCW 49.46.020, 2
49.46.120, and 49.46.820; and creating new sections.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. The legislature finds that as of January 5
1, 2025, Washington maintains the highest state-mandated minimum wage 6
in the country. The legislature further finds the minimum wage in 7
some local jurisdictions surpasses that of the state and represents 8
the highest of any cities in the United States.9
The legislature recognizes the importance of ensuring fair 10
compensation for workers while balancing the broader economic impacts 11
of wage and labor policies. The legislature acknowledges that 12
increases in the minimum wage reflect efforts to address rising costs 13
of living. However, the legislature also finds that recent aggressive 14
increases in the minimum wage at both the state and local level also 15
carry inflationary consequences, which can diminish the intended 16
purchasing power benefits and impose unintended burdens on small 17
businesses and consumers alike. 18
The legislature finds that while well-intentioned, these drastic 19
wage hikes over a short time may actually hurt the very workers they 20
were intended to benefit. As recent research from the University of 21
S-0579.1
SENATE BILL 5339
State of Washington 69th Legislature 2025 Regular Session
By Senator Fortunato
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Washington indicates, these increases have reduced available hours 1
and cost workers potential earnings. The legislature recognizes that 2
many small businesses operate on razor-thin margins and rapid shifts 3
in the cost of labor jeopardize the ability of these businesses to 4
remain open. Such policies may incentivize the exact opposite 5
behavior that they were intended to generate, as employers facing 6
higher costs may be forced to reduce hiring, cut hours, transition to 7
increasingly available automation, or ultimately decide on layoffs as 8
the only ways to remain in business. The legislature further finds 9
that these unintended consequences have an enormous disproportionate 10
impact on young workers seeking entry-level jobs, shutting young 11
candidates out of their first employment opportunities and stifling 12
their potential career growth. 13
Therefore, the legislature seeks to address the economic and 14
social ramifications of the current volatile state and local minimum 15
wage policies by pausing further shifts in the minimum wage and 16
linking future increases to more stable and uniform federal action.17
Sec. 2. RCW 49.46.020 and 2019 c 236 s 2 are each amended to 18
read as follows: 19
(1)(a) Beginning ((January 1, 2017, and until January 1, 2018, 20
every employer shall pay to each of his or her employees who has 21
reached the age of eighteen years wages at a rate of not less than 22
eleven dollars per hour.23
(b) Beginning January 1, 2018, and until January 1, 2019, every 24
employer shall pay to each of his or her employees who has reached 25
the age of eighteen years wages at a rate of not less than eleven 26
dollars and fifty cents per hour.27
(c) Beginning January 1, 2019, and until January 1, 2020, every 28
employer shall pay to each of his or her employees who has reached 29
the age of eighteen years wages at a rate of not less than twelve 30
dollars per hour.31
(d) Beginning January 1, 2020, and until January 1, 2021, every 32
employer shall pay to each of his or her employees who has reached 33
the age of eighteen years wages at a rate of not less than thirteen 34
dollars and fifty cents per hour.35
(2)(a) Beginning on January 1, 2021, and each following January 36
1st as set forth under (b) of this subsection, every employer shall 37
pay to each of his or her employees who has reached the age of 38
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eighteen years wages at a rate of not less than the amount 1
established under (b) of this subsection. 2
(b) On September 30, 2020, and on each following September 30th, 3
the department of labor and industries shall calculate an adjusted 4
minimum wage rate to maintain employee purchasing power by increasing 5
the current year's minimum wage rate by the rate of inflation. The 6
adjusted minimum wage rate shall be calculated to the nearest cent 7
using the consumer price index for urban wage earners and clerical 8
workers, CPI-W, or a successor index, for the twelve months prior to 9
each September 1st as calculated by the United States department of 10
labor. Each adjusted minimum wage rate calculated under this 11
subsection (2)(b) takes effect on the following January 1st.12
(3))) on the effective date of this section, every employer shall 13
pay to each of their employees who has reached the age of 18 years 14
wages at a rate of not less than $16.66 per hour.15
(b) Beginning December 30, 2025, and each following December 16
30th, the department of labor and industries shall increase the 17
minimum wage established in (a) of this subsection by a percentage 18
equal to the percentage increase in the federal minimum wage 19
established in federal fair labor standards act, 29 U.S.C. Sec. 206, 20
if the federal minimum wage was increased in the preceding year. The 21
minimum wage rate established under this subsection (1) may not be 22
increased if the federal minimum wage was not increased in the 23
preceding year.24
(c) A local jurisdiction with, as of the effective date of this 25
section, a minimum wage rate above $16.66 per hour may not increase 26
its minimum wage above the rate that exists for the local 27
jurisdiction as of the effective date of this section. If the state 28
minimum wage rate established pursuant to (b) of this subsection 29
subsequently exceeds the minimum wage rate of the local jurisdiction, 30
the state minimum wage rate applies.31
(2) An employer must pay to its employees: (a) All tips and 32
gratuities; and (b) all service charges as defined under RCW 33
49.46.160 except those that, pursuant to RCW 49.46.160, are itemized 34
as not being payable to the employee or employees servicing the 35
customer. Tips and service charges paid to an employee are in 36
addition to, and may not count towards, the employee's hourly minimum 37
wage. 38
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(((4))) (3) Beginning January 1, 2018, except as provided in RCW 1
49.46.180, every employer must provide to each of its employees paid 2
sick leave as provided in RCW 49.46.200 and 49.46.210.3
(((5))) (4) The director shall by regulation establish the 4
minimum wage for employees under the age of eighteen years.5
Sec. 3. RCW 49.46.120 and 2017 c 2 s 9 are each amended to read 6
as follows: 7
This chapter establishes minimum standards for wages, paid sick 8
leave, and working conditions of all employees in this state, unless 9
exempted herefrom, and is in addition to and supplementary to any 10
other federal, state, or local law or ordinance, or any rule or 11
regulation issued thereunder. ((Any)) Subject to RCW 49.46.020(1)(c), 12
any standards relating to wages, hours, paid sick leave, or other 13
working conditions established by any applicable federal, state, or 14
local law or ordinance, or any rule or regulation issued thereunder, 15
which are more favorable to employees than the minimum standards 16
applicable under this chapter, or any rule or regulation issued 17
hereunder, shall not be affected by this chapter and such other laws, 18
or rules or regulations, shall be in full force and effect and may be 19
enforced as provided by law. 20
Sec. 4. RCW 49.46.820 and 2017 c 2 s 11 are each amended to read 21
as follows: 22
The provisions of chapter 2, Laws of 2017 are to be liberally 23
construed to effectuate the intent, policies, and purposes of chapter 24
2, Laws of 2017. Nothing in chapter 2, Laws of 2017 precludes local 25
jurisdictions from enacting additional local fair labor standards 26
that are more favorable to employees, including but not limited to 27
more generous ((minimum wage or )) paid sick leave requirements. 28
However, adjustments to a local jurisdiction's minimum wage rate are 29
subject to RCW 49.46.020(1)(c).30
NEW SECTION. Sec. 5. This act may be known and cited as the job 31
loss prevention act.32
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