SEATTLE, Wash. — Seattle’s minimum wage will increase from $21.30 to $22.14 per hour, starting Jan. 1 -- giving the city one of the highest minimum wage rates in the country.
Annual minimum wage adjustments have been established in Seattle law since 2015, according to the Seattle Office of Labor Standards Director Steven Marchese.
KIRO 7 spoke to Marchese before an event Wednesday.
The event highlighted new protections for domestic workers.
The office announced the latest rate increase, as the local economy faces rising expenses, including higher fuel costs.
Worker advocacy groups praised the upcoming wage increase.
CJ Garcia, organizing director for Working WA, noted that workers are navigating ongoing economic pressures.
“I think especially, in this moment, where the economy continues to be, you know, firsthand, one of the things that workers are navigating,” Garcia said. “It’s a step in the right direction.”
Seattle resident Donna Flook also supported the policy, emphasizing the economic benefits of increased worker pay.
“I think that we’re one of the few states that’s doing this,” Flook said. “What happens when people have more money, it puts more money back in the economy.”
Policy critics questioned the mandate’s impact on local commerce and employment.
Mark Harmsworth, director of small business policy at the Washington Policy Center, issued a statement warning of adverse outcomes for employers and staff.
The full statement reads:
“Seattle’s increase in the minimum wage to the highest in the state will not make Seattle more affordable. An increase in the minimum wage will force employers to increase prices, reduce worker hours, and in some cases eliminate positions. If the city council really wants to improve the lives of average workers, reduce the regulations on businesses, keep their costs low, and give young workers a chance to climb the economic ladder. Seattle’s minimum wage hike will give a short-term boost to some workers at the expense of other workers.”
Anthony Anton, president and CEO of the Washington Hospitality Association, sent a statement to KIRO 7 which read:
“This latest minimum wage increase is another stark reminder of the challenges facing our industry. Labor costs exceeding 40%, coupled with cost increases for rent, utilities, and insurance, have reduced already slim margins even more for many operators. While these challenges are very real, I strongly believe the recipe for success that I outlined in my latest State of the Industry presentations (restaurants lodging) is our path back to prosperity.”
City officials outlined the intent behind the wage requirements while acknowledging the financial demands on business owners.
Marchese explained the objective of the wage threshold.
“We want our workers to be able to buy food, pay for gas, buy childcare, pay their rent, and that’s the philosophy behind having a minimum wage,” Marchese said.
Marchese also noted that businesses face major operational expenses separate from labor, such as materials, rent, insurance and supplies.
Marchese acknowledged that the city is considering examining broader business costs beyond labor.
“There are a lot of inputs that go into running a business, cost of materials, cost of rent, cost of insurance, cost of supplies. I think it’s important to put this in the context of ‘all of the things businesses,’ and I think, in the city, there is certain energy to take a look at that more deeply,” Marchese said.
The minimum wage increase to $22.14 per hour takes effect Jan. 1.
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