The Olympia Finance Committee is developing a potential recommendation to the city council that would raise the minimum wage in the city to at least $20 per hour as early as January 1, 2025. The committee deferred a conversation about proposing a "Workers' Bill of Rights" until next week.
Business and organization leaders that operate in the city are alarmed, both about the process and about requests from labor for even higher minimum hourly wages. More than 80 gathered this week for a "listening session" organized by the Thurston County Chamber of Commerce, the Thurston Economic Development Council and the Olympia Downtown Alliance.
Several business and organization heads have told The JOLT that a sudden jump to $20 or more would be extremely challenging. Some said that their businesses would have to raise prices to the point that they would be uncompetitive with locations in Tumwater and Lacey. None wanted to be quoted for this story.
Wages in Lacey, Tumwater and other county areas would not be affected if the City of Olympia acts to raise the minimum wage in Olympia.
At its meeting on September 16, the Finance Committee prioritized discussion of a city minimum wage that would exceed the state's minimum wage law, such as those implemented by Seattle and Seatac. The committee aims to bring an ordinance for the city council's consideration to provide higher wages for all employees within the city limits.
Assistant City Manager Stacey Ray presented a plan to the committee outlining a scope, schedule, and calendar for touch points with the full council on the issue of minimum wage increase.
During the discussion, Councilmember Jim Cooper advocated for a $20 per hour minimum wage. He said this amount is an aggressive but reasonable starting point for Olympia. The councilmember added that the current federal and state minimum wages are "criminal" and do not allow anyone to live in any part of the United States. The U.S. and Washington minimum wage rates are $7.25 and $16.28 per hour, respectively. Washington's minimum wage will increase to $16.66 an hour on January 1, 2025, a 38-cents-per-hour increase, the state Department of Labor and Industries announced Monday.
Councilmember Clark Gilman questioned whether the proposed $20 minimum wage was appropriate. He said the city should consider research data that consider living costs, such as rent, food, and healthcare when determining an appropriate minimum wage level.
Gilman suggested that Olympia research other calculations, such as the ALICE (Asset Limited, Income Constrained, Employed) report from MIT and the University of Washington, to determine what constitutes a true "livable wage."
Ray identified the focus areas and approach the city plans to take to address the issue, including examining the potential legal requirements or implications and researching other Washington cities that have taken similar actions.
She added they would conduct outreach and engagement with stakeholders.
For October and November, Ray said that the city will conduct targeted outreach and informational engagement with labor groups, non-profit organizations, the Thurston County Chamber of Commerce, the Thurston Economic Development Council, the Olympia Downtown Association, and the West Olympia Business Association.
While Gilman does not oppose gathering input from the employer community, he cautioned against letting businesses "decide what is possible."
"My one little pushback in this plan is that we have explicitly named business groups and named people who would be advocating for working-class people and poor people." Gilman noted, "we have a chamber of commerce consultant to do the research. It feels to me pretty loaded towards asking if employers would like to pay more. I don't know if that's helpful."
He suggested bringing in economic experts to assess the implications and benefits of increasing the minimum wage and examine the "whole ecosystem of all of the people and the money."
On Monday, the committee will discuss a potential "Workers' Bill of Rights."
Councilmember Cooper said the issues of workplace safety protections and scheduling work are more complex than the minimum wage, which is a straightforward policy change.
Committee members said they want to make sure to "get the rest of it right" regarding the Workers' Bill of Rights policies.
Cooper emphasized the importance of not just focusing on the needs of one industry, such as grocery workers, but instead supporting a wide range of workers across Olympia. "All industries have changed dramatically. We want to make sure that we are not missing something significant."
Meanwhile, Ray provided a schedule for the minimum wage increase process:
The Finance Committee plans to discuss the Workers' Bill of Rights at its special meeting on Monday, October 7, starting at 3 p.m. Use this link to register to attend.
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JulesJames
I was a shopkeeper in Seattle when City Council started down this path. Sold my store. Too much of my business model involved giving kids their first employment. Teaching them the value of being on time to work. How to say "thank you" to an adult sincerely. How to sweep or re-stock when business was slow. A few months working for me earned their parents' everlasting praise and customer loyalty. At $20 an hour, I can't train a kid. Olympia City Council must be thinking shopkeepers aren't worth keeping around anymore.
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OlyBlues
Great plan by long-term councilman Jim Cooper to saddle more small businesses with increased labor costs at a time when record inflation by his Democratic party is affecting people's ability to survive let aloe make ends meet. I don't know why anyone would want to be a business owner in Olympia. Look no further than this misguided, Olympia knows best policy.
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