The bill aims to stabilize minimum wage volatility in Washington by linking future increases to the federal minimum wage. As of January 1, 2025, the state will maintain the highest minimum wage in the country, but the legislature recognizes that aggressive increases at both state and local levels can lead to inflationary consequences, potentially harming workers and small businesses. The bill proposes to pause further shifts in the minimum wage and instead tie future increases to the percentage increase in the federal minimum wage, ensuring that the state minimum wage does not exceed local jurisdictions that currently have higher rates.

Key amendments include establishing a minimum wage of $16.66 per hour effective immediately, with subsequent increases occurring on December 30 each year, contingent upon federal minimum wage increases. Local jurisdictions with a minimum wage above $16.66 will not be allowed to raise their rates further unless the state minimum wage surpasses theirs. Additionally, the bill clarifies that all tips and service charges must be paid to employees in addition to their hourly minimum wage, and it maintains the requirement for paid sick leave for employees. The act is officially titled the "job loss prevention act."

Statutes affected:
Original Bill: 49.46.020, 49.46.120, 49.46.820