Tacoma, Washington to Increase Minimum Wage in 2017

October 26, 2016

minimumwage

Washington is one of the states spearheading increases toward a higher, more competitive minimum wage for the workers in their state.  In November 2015, Tacoma voters approved a $12 minimum wage that would be phased in over a two-year period.  The first phase took place on February 1, 2016 when the minimum wage increased to $10.35 per hour.  Phase 2 will take place on January 1, 2017 when the minimum wage increases to $11.15 per hour.  Finally, the phase-in will be complete on February 1, 2018 when the minimum wage reaches its goal of $12.00 per hour.  After that date, there will be annual inflation adjustments on January 1 of each year.

Who Is Impacted?

The law applies to all employers within Tacoma’s city limits including private, non-profit and government employers.  In addition, all employees who work in Tacoma for at least 80 hours per year are covered by the minimum wage law.

What must employers do?

Employers must ensure that they are ready to comply with the law by January 1, 2017.  One important thing for employers to consider is that tips are not counted as a part of wages.  In addition, employers must notify employees of the minimum wage by displaying the Tacoma minimum wage notice within a highly visible location of the business such as a break room, lunchroom or often-used meeting room.

Employers must also keep detailed documentation concerning the hours worked of all Tacoma employees and the wages paid to the employees.  Employers must use this information in order to certify their compliance when applying for, or renewing, their business license.

Tacoma employers must also comply with the city’s Leave Ordinance.  Both the minimum wage notice and leave notice are available on the Tacoma labor poster.  Employers must also comply with all state and federal labor law compliance postings.  The Washington all-in-one labor law poster includes all required federal and state posting requirements.  The Labor Law Center is your one-stop labor law compliance provider, and we stand behind our service, taking one critical piece of compliance off of your plate.