Washington Community Action Network

The Fair Labor Standards Act first set a national minimum wage in 1938. It set out to assure "the maintenance of the minimum standard of living necessary for health, efficiency, and general well-being of workers."

Many states have supported that principle by enacting minimum wage laws of their own which, in some cases, exceed the federal minimum.

Some members of the business community opposed establishing the minimum wage and have resisted every proposed increase since. In some states, the restaurant industry has succeeded in passing "tip credit" laws, which allow employers to pay tipped workers less than the minimum wage. Washington has no such law.

Washington CAN! has been involved in three campaigns to raise the minimum wage, in 1988, 1993, and 1998. In 1988, the minimum wage was raised from $2.30 an hour to $3.85 in 1989 and to $4.25 an hour in 1990. HB 1393 raised the minimum wage to $4.90 an hour in 1993. For the next five years our state minimum wage languished at $4.90 as the wage in Oregon and California leapfrogged our state.

But in 1998, the citizens of our state took the matter into their own hands with Initiative 688. I-688 raised our state minimum wage in two steps to $6.50 in 2000; and required automatic annual adjustments for inflation thereafter. The 2002 state minimum wage is $7.01 an hour, after being indexed for inflation at the beginning of the year.

Using only volunteers, more than 288,000 signatures were collected and the measure passed by a 66-34 margin, the biggest of any 1998 ballot measure. Washington CAN! was active in collecting tens of thousands of signatures and fighting for I-688.

Washington’s voters have consistently voted in favor of workers by supporting a strong minimum wage. In 1988, I-518 passed with 84 percent of the vote. In 1998, voters supported I-688 by a 2 to 1 margin. The message from the voters has been a clear and consistent mandate: If you work full time, you shouldn't live in poverty.

But attempts to politicize the issue will not stop. Since I-688's passage, there have been numerous attempts to chisel away at the minimum wage: bills to allow “tip credits,” and legally pay restaurant workers less than than the minimum wage; bills to count farmworkers’ housing against their wages; and other bills to undermine the will of the people.

Nevermind that countless studies show raising the minimum wage has negligible impact on inflation and business failures. These attacks are not about supporting small businesses, or fighting the recession: they are attempts to undermine the minimum wage laws and the will of Washington’s voters. Washington CAN! will stand firm in opposing any attempt to reduce the minimum wage for any sector of employees.

RECENT LEGISLATIVE HISTORY

1988 — HB 1544 proposed increasing the minimum wage from $2.30 to $4.25. Passed House, died in Senate. Initiative campaign launched for the same increase. I-518 passed by a 81-19 margin.

1993 — HB 1393 raised the state minimum wage from $4.25 to $4.90. Unfriendly amendments to create a sub-minimum training wage and tip credit were both defeated. The bill passed and was signed into law.

1996 — The GOP-controlled US Congress passed an increase in the federal minimum wage from $4.25 to $5.15 an hour.

1997 — SB 5738 would have frozen tipped workers' wages at $4.90 an hour indefinitely. Died in Senate Rules.

1998 — SB 6577 would have raised the state minimum wage in two steps to $6.50 and then index it to the inflation rate. Died in Senate committee. Identical measure appears on the ballot. I-688 passes, 66-34.

1999 — HB 2104 would have allowed employers to pay tipped workers 85 percent of the minimum wage. It died in the House.

Latest Minimum Wage Developments

Follow this link for the WSLC's weekly report on the legislative seesion, including the latest news about threats to the minimum wage.

Fact Sheet

Minimum Wage and Tip Credit (PDF)

Does The Minimum Wage Hurt Business?

Does it cause job losses and contribute to inflation? Click this link to read the January 2003 report from the Economic Opportunity Institute.