Minimum wage increase affects local businesses

The recent election results mean Pullman small businesses will see a rise in the cost of employment starting on Jan. 1.

Initiative 1433 will raise Washington’s minimum wage incrementally from the current $9.47 to $13.50 by 2020. The initiative also requires employers to provide paid sick leave to employees. As of Nov. 16, the initiative was approved by more than 57 percent.

The initiative is also the only one on which Whitman County strayed from the statewide results. The county voted no with more than 53 percent, as of Nov. 15.

Marie Dymkoski, Pullman Chamber of Commerce executive director, said she is not surprised the initiative passed.

A year ago, she said, a lot of Pullman small business owners were upset. One business owner actually went to Olympia and spoke against the initiative, Dymkoski said.

The reason the initiative puts extra stress particularly on Pullman area businesses is they are competing with a significantly lower minimum wage eight miles away in Moscow, Idaho, Dymkoski said.

The extra costs will be slowly phased in to make it work out, she said. We will see a rising cost of sandwiches in restaurants as they adjust to pay their employees, she said.

“It’s the cost of doing business,” Dymkoski said.

The initiative is most likely to hurt small businesses that already only have a few employees but might have to make cuts because they can no longer afford them all, she said.

Archie McGregor, Dissmore’s IGA owner, said he disagrees with the rising minimum wage.

“I think it’s bad for small business,” he said.

The rise in minimum wage is also unfair for employees, McGregor said, because people who have been working somewhere for a longer time will be making the same as those who started more recently. It does away with younger, inexperienced employees and people trying to get a start in life will have a harder time getting a job, he said.

McGregor said there is already not a lot of profit in the grocery industry, so the extra money needed to be spent on a higher wage has to come out of somewhere and in the end, it will get rid of people.

“Long term, it hurts employees,” McGregor said.

Mackenzie Yates, Roost Coffee & Market owner, said she has 10 employees working for her.

“I’m not overly stressed,” she said.

Yates said despite having the price of labor increase, the amount of money earned also increases to compensate. Prices in any consumer area will be rising, she said, it will happen across the board.

“I think people have forgotten to look at the big picture,” Yates said.

You may have to pay more, she said, but you also get paid more. If the cost to employ someone rises, everything else will also rise, she said.

“It’s not something to have your life ruined by, if you are a business owner,” Yates said.