Seattle City Councilmember Joy Hollingsworth (District 3) announced that she will not move forward with her current legislation and is instead helping lead a collaborative approach to discussions. The current minimum wage tip credit, which went into effect in 2015, is set to expire at the end of this year.

She released the following statement today:

“Seattle’s small, neighborhood restaurants help define our diverse communities, provide critical jobs and offer opportunities for career advancement for workers and entrepreneurs. It is in the spirit of helping these restaurants survive lingering pandemic disruption and increased costs that I began this conversation—equal with the commitment to advance wages and the rights of all workers in our city.

My primary goal has always been to help create an environment to put the most money in workers pockets.  The well-being of our workforce is paramount to our city. My initial proposal was never an end, but the beginning of a process. I look forward to the next few weeks to focus on working with stakeholders, including small business owners, labor unions, and our Mayor’s Office to find a balanced solution. I’m eager for the work that lies ahead,” said Councilmember Hollingsworth.

Background

The current minimum wage is $19.97 per hour in Seattle. However, businesses that employee less than 500 employees can pay $17.25 per hour if they pay $2.72 per hour toward medical benefits or if the employee earns $2.72 per hour in tips. That tip credit will go away in 2025 if the city does not act to extend a tip-credit.