The history of the Idaho minimum wage is interesting. Idaho faces a unique challenge on the minimum wage front, as it is right next door to Washington, the state with the highest minimum wage. While the Idaho minimum wage is $5.15 per hour, the minimum wage in neighboring Washington recently increased to $7.93 per hour.
Idaho’s minimum wage has been at the federal level of $5.15 an hour for almost a decade. A state bill to increase the wage to $6.15 an hour, and mandate yearly increases tied to inflation, similar to Washington State, died in an Idaho House committee last spring. The bill was defeated because some lawmakers feared it would cause higher prices, increasing unemployment.
Not every citizen of Idaho agrees. In Moscow, Idaho the city voted in August to pay its employees a “living wage” of $10.25 an hour. Although that rate only applies to those who work for the city, it is an indication of the general attitude towards the minimum wage within the city. The Moscow minimum wage also applies to every employee of a company that contracts with the city.
The flip side of the coin can be seen in communities that are on the Washington – Idaho border, such as Pullman, Washington. According to local business owners, prices in Pullman are significantly higher than in neighboring towns in Idaho, which reduces demand. According to one source, the higher Washington minimum wage has put a damper on development on Pullman. The higher minimum wages translates into higher prices, he says – which can be tough, when there’s a town with lower prices less than 10 miles away.
Lana M., a nail salon owner in Pullman, says she doesn’t mind paying her employees the extra 30 cents per hour. However, if the minimum wage were to rise to $9.50 per hour, it would put her out of business. “As a small business, it’s going to catch up to me eventually,” she said
