Source: Fox News
Summary
Seattle plans to raise its minimum wage to $22.14 an hour in 2027, with all employers required to pay the same rate starting in 2025. Some restaurant owners have closed businesses, citing rising labor costs. In 2025, 450 Seattle restaurants closed, and transactions fell in some areas. A federal bill backed by Sanders and AOC proposes a $25 minimum wage. Seattle may have the highest minimum wage in the country by 2027. A study found that the wage increase led to fewer new businesses in Seattle but more in surrounding suburbs.
Our Reading
As expected, the matter has reached another stage.
Seattle employers pay the same minimum wage in 2025.
Restaurants close, transactions drop, costs rise.
Another city plans a higher wage, more pressure, more closures.
Businesses move, workers apply for lower-paying jobs.
Author: Evan Null
Seattle’s Minimum Wage and Business Closures
Seattle is set to increase its minimum wage to $22.14 an hour in 2027. This follows a 2025 mandate requiring all employers, including small businesses, to pay the same rate. The wage is adjusted annually for inflation. Some restaurant owners have closed their businesses, citing rising labor costs as a key factor.
During the first half of 2025, 450 Seattle restaurants, or about 16% of the city’s total, closed. This coincided with a 7% drop in restaurant and retail transactions in some business districts. Square data, cited by The Wall Street Journal, highlights the impact of the wage hikes on local commerce.
A federal bill backed by Sanders and AOC proposes a $25 minimum wage, with support from over 100 organizations. If no other jurisdictions match Seattle’s wage, it will have the highest minimum wage in the country by 2027. A full-time minimum wage worker in Seattle will earn just over $46,000 annually.
One Seattle restaurant owner noted that if servers make $20 an hour, cooks must earn $35. This reflects the ripple effect of wage increases across the service industry. The Washington Hospitality Association’s CEO warned that operators are making less money while charging more.
A study from the University of Wisconsin, Madison, found that the announcement of Seattle’s minimum wage increase led to fewer new businesses in the city but more in surrounding suburbs. This suggests a shift in economic activity away from Seattle’s core.
