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04-May-2019 07:01

Only time will tell what the effects of Initiative 1433 will be on the labor market in Washington State.

However, in era of outsourcing and automation, with driverless cars purportedly on the horizon, it appears more crucial than ever that the labor force in Washington State develop medium- and/or high-skills if they wish to be employed and/or economically viable.

Empirically, the increased minimum wage in Seattle caused a number of restaurants to increase their prices and/or doing away with tips and gratuities.

Restaurants throughout the state may also begin implementing similar measures following the passage of Initiative 1433.

Assuming that a full-time minimum wage employee works 40 hours per week, 48 weeks per year, the cost of Initiative 1433 for one minimum wage, full-time employee compared to 2016, will be the following: By 2020, the cost of employing a single, full-time, minimum wage employee (see above for hours worked) will increase by 46.12% compared to 2016.Other industries likely to be affected by an increased minimum wage are grocery and retail stores, fast and casual dining restaurants, lawn and landscaping services, and other industries that rely upon low-skilled workers who earn minimum wage.Given the 46.12% cost increase by 2020 of employing a full time, minimum wage worker, many businesses appear poised to invest in technology where doing so would remove the need for a minimum wage worker, and the cost is less then increased cost of employing someone.Experts predicted employers and lawmakers were going to finally start paying more attention to what many began to recognize as a hugely important benefit for working parents.

After all, according to a 2016 report from the Bureau of Labor Statistics, more than 100 million employees still aren’t offered paid family leave at their jobs.Given the increased labor costs on the horizon, businesses that employ minimum-wage workers would be prudent to evaluate capital investment and/or automation to replace or minimize their need to employ minimum wage workers.

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