Everett voters approve minimum wage initiative, a ‘victory for workers’

by · The Seattle Times

Everett voters approved a labor-backed initiative that will increase the city’s minimum wage beyond the state minimum beginning July 1, according to unofficial results published by Snohomish County.

The measure, passing by nearly 58% of the vote, was one of two strikingly similar proposals presented to voters this election. Both aimed to raise the municipal hourly wage, though they differed in how they classified businesses and what could be considered compensation.

The measure that passed — initiative 24-01 — was put forward by Everett Deserves a Raise, a pro-worker group that took an assertive approach to raising the wage.

“It’s a victory for workers in the city of Everett,” said Mike Berryhill, a labor organizer in Everett. “This is good; it’s a good feeling.”

The other measure — initiative 24-02 — was put forward by Raise the Wage Responsibly, a pro-business group. Voters rejected it by 59.34%.

The two initiatives overlapped significantly, sharing much of the same language. Both would require large employers — defined as those with more than 500 employees in Washington — to pay a minimum hourly wage of $20.24 beginning July 1. For employers with between 15 and 500 employees, minimum hourly wage would be set at $18.24 beginning July 1, gradually increasing to the full municipal minimum by July 1, 2027. Those employers with 14 or fewer employees would not be affected.

By contrast, the state minimum wage is $16.28 per hour, set to increase to $16.60 per hour in the new year. Numerous municipalities, including Seattle, Burien and SeaTac have passed local ordinances setting minimum wages higher than the state’s. Under both initiatives, wages would also be indexed to the rate of inflation for the region, as measured by the Consumer Price Index for the Seattle area.

The two Everett measures diverged in how they classified employers by size and whether tips and other benefits could be counted toward total compensation.

Under the labor-backed initiative 24-01, any enterprise with more than 500 employees would be considered a large employer, including separate entities that share common management. The measure also prohibits employers from counting tips, gratuities and service charges toward wages paid.

The Everett Deserves a Raise campaign behind the initiative is made up of a coalition of local activists, community groups and union members, said Berryhill.

By contrast, initiative 24-02 would have classified franchises as independent businesses, allowing them to raise their wages more gradually. The measure also would allow businesses to count tips and contributions to medical benefits and retirement plans toward total compensation.

The Raise the Wage Responsibly campaign was formed in direct response to Everett Deserves a Raise, said Jeff Reading, communications consultant for the Washington Hospitality Association.

The organization is a trade group representing the restaurant and hotel industry and the primary sponsor behind the campaign. Initiative 24-02 was aimed at providing voters with an alternative that would still increase the local minimum wage while giving flexibility to employers, particularly the restaurant industry, Reading said.

“Everett voters decided to give minimum wage workers a raise, but they also voted to do so in a way that will be unsustainable for the local small business owners who will pay those higher wages,” Reading said in a statement Wednesday.

“The impacts will be felt not just by the business owners themselves but by consumers and workers alike.”