That is correct. According to the Department of Labor & Industries, Washington state’s minimum wage will stay the same in 2016 — $9.47 per hour — because the national Consumer Price Index did not increase.
However, wage pressure is mounting from Tacoma and Seattle where local ordinances were voted on and passed easily to increase the minimum wage within their jurisdiction. In 2016 Seattle’s minimum wage will be up to $13.00/hr (based on the size of company and benefits offered), and Tacoma’s will be $10.35 as of February 1st.
In an economy where the unemployment rate is at a 7 year low and 1 in 5 employees say “they plan to find new employment in the coming year” , no employer can afford to ignore this. Just because the state is NOT increasing the minimum wage doesn’t mean that employers, that need to attract and retain talented employees, shouldn’t also be promoting wage growth. Understand that if entry level wages are growing, so too must the wages of your high performing & tenured employees. Compression (when lower wages increase and higher wages stay flat) can be devastating to an organizations compensation strategy and to employee morale.
New Era HR Solutions understands the need for business to achieve the “right results” and at times like these, we encourage our clients review their compensation programs, and adjust as necessary to make sure they align with their overall business strategy.