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Phase In of Seattle Minimum Wage Ordinance Begins April 1st

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In 2014 the Seattle City Council approved the adoption of a $15 per hour minimum wage.  The phase in period of this legislation depends on employer size.
“Large Employers” – Large employers are defined as businesses with more than 500 employees in the United States (regardless of where they work).  The $15 per hour wage will be phased in over the next three to four years.  Large employers can meet this requirement by paying the stipulated hourly minimum wage or paying a reduced hourly minimum wage if the employer makes payments towards an employee’s medical benefits plan.  The plan must be the equivalent of a “silver” level or higher as defined in the federal Affordable Care Act.  Please see the following fact sheet in regards to large employers:

http://www.seattle.gov/Documents/Departments/CivilRights/mwo-large_employers.pdf

“Small Employers” – Small employers are defined as businesses with 500 or fewer employees in the United States (regardless of where they work).  The $15 per hour wage will be phased in over the next five to seven years.  Small employers can meet this requirement by paying the stipulated hourly minimum wage.  They may also pay a reduced hourly minimum wage if either of the following makes up the difference between the minimum wage they pay and the City of Seattle minimum compensation rate:

  1. The employer makes payments towards an employee’s medical benefits plan as noted above.
  2. Employee tips reported to the IRS constitute the difference.

Please see the following fact sheet in regards to small employers:

http://www.seattle.gov/Documents/Departments/CivilRights/mwo-small_employers.pdf

 

http://www.seattle.gov/  provides additional information, including frequently asked questions and the final administrative rules.

http://www.seattle.gov/civilrights/labor-standards/minimum-wage/frequently-asked-questions

http://www.seattle.gov/civilrights/labor-standards/minimum-wage/rules