by Valerie Hughes and Aurora Janke
Seattle’s new minimum wage ordinance goes into effect April 1, meaning employers—regardless of size—must pay employees working in the city at least $11 per hour.
Employers with 501 or more employees must pay a “minimum wage” of $11 per hour, while employers with 500 or fewer employees must pay a “minimum compensation” rate of $11 per hour. The definition of “minimum wage” includes wages, commissions, piece-rate pay, and bonuses received by employees. “Minimum compensation” includes wages, tips, and money paid by an employer toward employees’ medical benefits. Thus, small employers are able to count tips and medical benefit payments to help them reach the $11 minimum compensation rate.