Tuesday, August 11, 2015

Voluntarily Raising a Restaurant's Minimum Wage to $15/hour

 The Associate Press reports: 

Menu prices are up 21 percent and you don't have to tip at Ivar's Salmon House on Seattle's Lake Union after the restaurant decided to institute the city's $15 an hour minimum wage two years ahead of schedule.

   It is staff, not diners, who feel the real difference, with wages as much as 60 percent higher than before. One waitress is saving for accounting classes and finding it easier to take weekend vacations, while another server is using the added pay to cover increased rent.

Seattle's law, adopted last year after a strong push from labor and grassroots activists, bumped the city's minimum wage to $11 an hour beginning April 1, above Washington state's highest in the nation $9.47. Scheduled increases that depend on business size and benefits will bring the minimum to $15 within four years for large businesses and seven years for smaller ones.

      It sounds like a good business move to me. If every restaurant did it, though, business would suffer. 

https://lawprofessors.typepad.com/law_econ/2015/08/voluntarily-raising-a-restaurants-minimum-wage-to-15hour.html

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