Minimum wage increases altering economy

RITZVILLE - The Adams County Board of Commissioners heard a few discouraging words Oct. 15 having to do with the state's good intention to keep mounting minimum wage increases.

Adams County Human Resources Director Kathy Campbell told commissioners she was troubled that local businesses might not be able to recruit new employees.

"My main concern is in recruitment efforts," Campbell said. "If I were in the Seattle area and I could work for $20.76 (currently the state minimum wage is $16.28 per hour, but increasing to $16.66 Jan. 1), I'm going to try for those jobs that pay $4 more.

"That hurts the smaller businesses as far as their potential employment base, which also hurts their business. So, if they aren't able to hire qualified folks, then what does that look like to their business long term?"

Campbell detailed some of the spread in Washington State in which local jurisdictions are choosing to set minimum wage standards.

"What Seattle and the West Side have done is they've enhanced that minimum wage," she said, citing Seatac as an example, where the minimum wage is $20.17. "I think it was about 2020 when Seatac was the first to pass that law and then it spread from there.

"The Seattle core is $20.76. and that's $4 more than minimum wage, and that is for all employers," she said. "Tukwila is $21.20, Renton $19.90; Bellingham, Burien and unincorporated King County, are all well above the minimum wage."

The law to which Campbell refers is the state's brainstorm to enhance minimum wage with a cost of living increase which is now bolted, fused and spot welded to the minimum wage standard. With small communities such as Ritzville being very different economically than the 1,000-pound gorilla of Seattle, it's hard to see how businesses adjust for the disparity.

"I don't either," Campbell said. "So, that's why I was bringing all this to the attention of the county commissioners because many things that happen on the West Side migrate over to the eastern part of the state and my concern right now is minimum wage is one of the highest, if not, it's usually first or second or third highest in Washington."

What kind of burden does it put on employers here in Adams County?

"We have to recruit all over the state," Campbell said. "There are six of us who live in Spokane, that work here in Ritzville, and we also have Moses Lake, and Tri Cities.

"What happens on the West Side, though, tends to migrate over to the eastern side. I'm just looking ahead at what are the threats out there? I've seen this happen many times where it starts over there and it ends up in Spokane, and what does that look like for the Spokane area?

"And Spokane also has a very liberal City Council right now, so it would be easy for them to pass a new minimum wage and so I can see where it could easily take over other areas."

Campbell said she has been sounded out by local employers who are concerned about competing with the much higher minimum wage offered by communities such as Seattle as well as the burden of providing increased pay when sales have not generated greater income.

"I work with a network of HR professionals throughout the state," Campbell said. "There are anywhere between 55-65 professionals that are in group emails and we share information and we get policies, and we watch things so it is definitely a concern."

How did she detail those concerns with the county commissioners?

"My thought was just to make sure that they know that, obviously we have strengths and weaknesses in the county but on the outside of our jurisdiction what are the threats," Campbell asked. "What are the opportunities? And if it affects the employee base, that is my job, to make sure that they're aware of all of those new laws, any new taxes, that affect payroll. I make sure I pass that information on so it's part of my job."

Is the state minimum wage spooking businesses that might want to expand or start up here?

"Definitely," Campbell said. "I was just looking at stats that are out there. I think it was Washington Policy Center, they had a map that shows the U.S. and where new business startups are. And it shows that Washington State was way far behind, like in the 40th or 45th as far as new startups.

"And so, new businesses are not looking at Washington right now and it has a lot to do with minimum wage and just the climate. It's not employer-friendly right now."