As Seattle's minimum wage rises to $19.97 per hour in January, restaurants are grappling with the impact on labor costs. While many plan to raise menu prices, Shiro's Sushi in Belltown will absorb the increased wages by eliminating tipping and adding a service charge to bills. The change comes as the tip credit, which allowed businesses to pay lower wages if they provided benefits or tips, expires.
Staff at Shiro's Sushi in Seattle 's Belltown neighborhood prepare fresh fish just flown in from Japan. The restaurant is not planning to raise prices, unlike many others, when the new minimum wage takes effect on Jan. 1.
The tip credit went into effect in 2015 and expires at the end of 2024, meaning the minimum wage will be uniform across Seattle. Some restaurant owners said that will mean an increase in labor costs of more than $3 an hour for each employee. Inoue said one change they will make is they are doing away with tipping and will include a service charge on the bill. Inoue said he has heard rumors that some customers may no longer tip when they dine at Seattle restaurants due to the tip credit expiring.
Minimum Wage Seattle Restaurants Labor Costs Tip Credit
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