Washington's minimum wage increased from $8.07 to $8.55 on January 1, still making it the highest in the country. This is the second largest jump since 1999 when it increased by 80 cents.
Minimum wage has been raised each year in Washington since 1998 when voters approved an initiative to reevaluate it based on the cost of living in our state each year. Cost of living is determined by the Consumer Price Index, which bases this on the prices of goods and services.
With the new wage, employers must now increase employee rates by at least 48 cents. The voter-improved initiative is especially hard on business owners who project to pay out more this year to their employees in a difficult economic time for the nation.
The Seattle Times reported that Pagliacci's Pizza, a pizza chain with 29 locations will see a $100,000 increase in payroll costs.
Students here at Green River may also begin experiencing a downside to the increase in minimum wage. In order for businesses to make it out on top, workers could see a drop in hours or even experience a harder time finding a job.
Katie Dabbs, a student at GRCC, works at Mood Swings, a small clothing retailer in Maple Valley. She commented on how minimum wage is affecting her job.
"The economy is hurting my wages slightly. My hours have been cut and we are open less days than we used to be, but once the economy turns around I could imagine a wage increase or at least more hours."
Those students who expected a raise may not be seeing one. Alex Shimkus, who also attends GRCC and plays for the Gators baseball team, said he was originally paid $15 dollars an hour last year keeping up the baseball field and now will receive $10 an hour for the same job.
At capitalpress.info, Dan Fazio, who is a labor specialist with the Washington State Farm Bureau, predicts jobs will be moving out of Washington due to this increase.
Karen Brasch, who manages an employment database called Myinterfase at GRCC, believes that ultimately minimum wage will benefit the working student. Brasch works with students to find internships that allow them to earn credit while gaining valuable work experience.
When inquiring about the possibility of a decrease in internships due to the bad economy and rise in minimum wage, Brasch said that there is actually an increase in internships. She added though, "Students who participate in internships are doing it for the experience, not for the money."
Although, Brasch said many students who participate in the internship program earn minimum wage or higher.
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