Businesses seek to block portion of Seattle minimum wage law

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Minimum Wage Workers Demonstrate For Better Living Wage

Activists protest for higher wages outside a McDonald's restaurant on April 8, 2014 in Stamford, Connecticut. Demonstrations were organized across the state by Connecticut Working Families to bring attention to minumum wages paid by fast food chains and Wal-Mart stores. (Photo by John Moore/Getty Images)

SEATTLE (AP) — Franchise owners are asking a federal judge to block part of Seattle’s new law which would see the city’s minimum wage rise to $15 an hour.

The International Franchise Association was in court Tuesday seeking a preliminary injunction, saying the law discriminates against local franchise business owners by unfairly lumping them in with large businesses.

Last year the City Council voted to gradually raise the minimum wage to $15 an hour. The plan gave businesses with more than 500 employees nationally at least three years to phase in the increase — four if they provide health insurance. Smaller employers got seven years.

The franchise owners say they should be treated as small businesses because they don’t have more than 500 workers locally. City officials have argued the franchisees have advantages that are unavailable to other local businesses.

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  • "peety"

    The FACT is, no minimum wage increase has ever lead to a loss of jobs In fact, in most cases, it is the opposite. It is a simple concept, pay people more, they spend more.

    But, I’d offer a settlement to the Franchises, get rid of the small business exception, Everyone pays $15 an hour. Problem solved.

    • "peety"

      Mr Moderator, I have thick skin, I can take it. No need to delete the childish response to my comment But I agree the KB comment was offensive.

    • Pops

      The CBO disagrees with your statement that minimum wage increases do not reduce jobs. Could you please document support for this very broad statement? I agree with your solution though at least to the extent it is consistent and “fair” – why should workers be paid less merely because their employer has fewer employees?

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