Peninsula Daily News news services
OLYMPIA — Washington state’s minimum wage will rise 37 cents to $9.04 next year, keeping it as the highest minimum hourly rate in the nation.
The jump from $8.67 per hour is based on increases to the federal Consumer Price Index, the state Department of Labor & Industries announced Friday.
Washington voters approved an initiative in 1998 tying the state minimum wage to inflation.
The particular index used to calculate minimum wage measures price changes in goods and services purchased by urban wage earners and clerical workers, such as food, clothing, shelter and services.
L&I said the index increased 4.258 percent during the 12-month period ending in August.
Fuel costs topped the price increases in the index over the last year.
The minimum wage applies to workers in both agricultural and non-agricultural jobs, although 14 and 15-year-olds may be paid 85 percent of the adult minimum wage, or $7.68 in 2012.
Washington is one of 10 states that adjusts its minimum wage based on inflation and the Consumer Price Index.
The others are Arizona, Colorado, Florida, Missouri, Montana, Nevada, Ohio, Oregon and Vermont.
Oregon has the nation’s second highest minimum wage.
It recently announced that its per-hour wage will rise 30 cents to $8.80 an hour next year.
Idaho follows the federal minimum wage, $7.25 cents an hour.
Because of a consumer price index decrease in 2009, the minimum wage in Washington stayed at $8.55 through 2010.
The biggest increase in minimum wage in the last five years was from 2008 to 2009 when workers received a 45 cent an hour increase.
A survey by The Associated Press showed that some Washington restaurants are considering menu price hikes to cope with next year’s 37-cent hike.
“It’s a pretty big deal, because all I have is minimum wage labor,” said Teri Ramsbottom, co-owner of JT’s Steak and Fishhouse in Longview, which has eight employees.
“We’re very angry about it.
“It goes up every year, but I thought we’d get by without an increase this year.”
Michele Bergeson, general manager of Kelso’s Red Lobster, has 70 employees, 33 make minimum wage.
Bergeson said the increase will become something else she has to factor as she guides her business through the recession.
“Overall, it just makes it a little tougher,” she said.
At Spokane’s Tomato Street restaurant, “it’s been 19 months since I’ve raised prices here at the restaurant,” said owner Dean Haynes.
Now he is considering doing just that.
“Somewhere we have to pass it on to your guests,” he said. “And again, that can be evil.”
In Washington, tips don’t count toward minimum wage. So Haynes said he is looking at an increase in operating cost next year of around $60,000.
Mike Casetta, owner of Fire Mountain Grill & Summerland Catering Services in Vancouver, across the Columbia River from Portland, said he could see how the increase could irk some business owners — but sees why the increase would be beneficial to employees.
“I have mixed feelings because I can’t see how anyone could survive off of even $9 an hour,” he said.
Casetta employees make at least $10 an hour.
“But if you were to own a couple fast food joints, those pennies could add up,” he said.
For Mindi Campbell, a college student who operates a gondola ride in Spokane’s Riverfront Park, the raise seems fair.
“With tuition going up, it’s good to see that increase going up in minimum wage to be able to keep up with that,” she said.
But the raise may pinch the Spokane Parks and Recreation Department.
Almost all of its 350 seasonal employees are minimum wage earners, which translates to tens of thousands of dollars in increased operating costs next year.
“Maybe we have a 10-week program for youth in the summer at our summer camps, maybe it reduces down to 8 weeks,” said a spokesman.
