As of Jan. 1, 2015, the minimum wage in the City of Seattle increased to $13.00 per hour for large employers, and $12.00 per for small employers (companies with fewer than 500 employees).

According to the City’s minimum wage ordinance, the minimum wage requirement can be met in two ways:

A) Pay the prevailing minimum wage rate according to the wage increase schedule for their business size; or

B) Pay a reduced minimum wage ($12.50 for large employers, and $10.50 for small employers) and make up the balance with employee tips reported to the IRS (small employers only) and/or payments toward an employee’s medical benefits plan (large and small employers).

The ordinance, approved by Seattle voters, calls for a phased-in implementation of the $15 minimum wage. Seattle’s minimum wage will continue to increase each year on Jan. 1, with the level of the increase dependent on the size of business and whether or not the worker receives healthcare benefits and/or tips. Large employers will pay the $15 minimum wage beginning Jan. 1, 2017, and small employers will pay the $15 minimum wage by Jan. 1, 2019.

“When our $15 minimum wage is fully implemented, more than 100,000 workers across the city will benefit,” said Seattle Mayor Ed Murray. “Higher wages will help make Seattle more affordable for everyone who works in the city. Our phased-in approach, developed by labor and business working together, minimizes disruptions – especially to small businesses. I am proud that the Seattle model has been replicated in other cities across the country.

Employers with employees performing work in Seattle are required to pay the prevailing minimum wage as outlined in the minimum wage schedule for their business category. Minimum wage requirements are the same for non-profit and private employers.