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SeaTac Increases 2021 Minimum Wage to $16.57 an Hour

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The City of SeaTac is increasing the mandatory annual adjustment to the city’s ordinance for hospitality and transportation industry employers to $16.57 per hour, effective January 1, 2021. The increase is calculated using the consumer price index for urban wage earners and clerical workers, (CPIW) for the twelve months prior to September 1 as calculated by the United States Department of Labor. The increase follows announcements that Washington state’s minimum wage will increase from $13.50 to $13.69 an hour on Jan. 1, 2021.

In Seattle,  the minimum wage will increase by $1.50 to $15.00 per hour on January 1, 2021 for businesses with 500 employees or less and who pay toward the employees’ medical benefits and/or allow employees to earn tips, according to the Seattle Office of Labor Standards (OLS). For Seattle businesses with 500 employees or less who do not pay medical benefits and/or allow employees to earn tips, the 2021 wage will increase to $16.69, up from $15.75 in 2020. A small employer in Seattle may pay an employee a minimum of $15/hour so long as the employee makes at least $1.69/hour in tips or the employer makes $1.69/hour towards qualifying medical benefits plan (silver level equivalent or higher). For large employers of 501 employees and more, the minimum wage in 2021 will increase to $16.69 to reflect the rate of inflation.

For resources to help with business adjustments for the wage increase, see the Washington Hospitality Association Members Hub Resources here.