The Washington minimum wage increased as of January 1, 2009, and the new rate is the highest in the nation. The new minimum wage rate is also the highest that the state of Washington has experienced since it linked the minimum to the cost of living.
According to the Washington L&I, or Department of Labor and Industries, the Washington minimum wage went up to $8.55 an hour for 2009. Each September, the L&I recalculates the minimum wage based on the Consumer Price Index, or CPI.
Any employers who have not updated their Washington minimum wage poster should do so ASAP. Employers are subject to sanctions, fines and penalties for not displaying updated posters.
Adjusting the minimum wage to the CPI is a result of an initiative approved by voters 10 years ago, in 1998, called Initiative 688. The state uses the CPI for Urban Wage Earners and Clerical Workers, or CPI-W.
As most readers know, the CPI is a national gauge, marking the cost of the various services and goods required for daily life basics. The CPI went up a significant 5.9% in the 12-month period that ended in August of 2008. In the previous year, by comparison, the rate was only 1.8%. That meant an increase of only 14 cents an hour in the minimum wage in Washington.
Employers who are looking for more information on the minimum wage in Washington are directed to the website Wages.Lni.wa.gov. They may also reach the Washington Department of Labor & Industries by calling either 1-866-219-7321 or 360-902-5316.
Employers are interested in the change because many of them, particularly small business owners, believe that the increase comes at a particularly difficult time. Recessionary pressures combined with higher prices, especially for food and gasoline, are already resulting in cutbacks or layoffs. Management believes the higher minimum wage rates will make the problem worse.
Washington is just one state making increases in their minimum wage based on the CPI. The others include Vermont, Florida, Oregon, and Colorado.
Second-highest minimum wage is in Oregon, where the rate is now $8.40 an hour.
Unlike many states, Washington has few exceptions to the minimum wage. The law applies to agricultural as well as non-agricultural workers. Children 14 and 15 years old may legally be paid 85% of the state minimum wage.
