Skip to comments.Businesses launch legal challenge to Seattle's $15 minimum wage
Posted on 06/18/2014 4:54:06 PM PDT by Oldeconomybuyer
Many Seattle workers are about to see their income go way up, after the City Council unanimously passed a $15 minimum wage earlier this month.
But faster than you can get a happy meal at McDonald's, the ordinance is facing a legal challenge.
I guarantee not everyone will survive, warned David Jones, who owns a Subway franchise in Seattle. This discriminatory law will affect some franchisees and they will go out of business.
The International Franchise Association, representing those concerns, has sued over the wage hike, specifically objecting to the fact the ordinance treats franchises as big businesses and requires them to pay the $15 hourly wage four years earlier than their mom-and-pop competitors.
This is dividing small business owners, IFA President and CEO Steve Caldiera said. Its the government picking winners and losers, and its unfair.
Seattle has 600 franchise businesses -- many with names lesser known than McDonald's or Burger King -- that employ 19,000 workers.
(Excerpt) Read more at foxnews.com ...
I was looking forward to the whole country seeing the results of this foolishness.
Seattle has a very large number of indie coffee shops and I’m betting the baristas aren’t making any $15/hr. Well, they will now. Those of them that are working.
Unfortunately, the short-sighted pencil necks who passed this law made no provisions for how the increased wages would be funded.
They took no measures like reducing the tax burden on small businesses, reducing the regulatory burden ($$s, time, paperwork) on businesses, and taking other measures to ensure that businesses prosper enough to pay higher wages.
The socialists have no concept of profit, loss, risks, and elementary economics of small businesses. They base their action on ignorance, jealousy, and basic mean spiritedness of their ilk. They could care less about the people who will lose their jobs, or the businesses that go belly up.
The net result most likely will be a dampening of the local economy owing to fewer jobs and higher prices. Of course they will blame "greedy" businesses.
Lie-beral logic? If some fast food places go out of business, that is good. They are owned by robber barons. The Peeeeple should be feeding themselves from community gardens (one seattle city council person suggested recently that Boeing be turned into one, by the way)
Undoubtedly they will force this through. So the best hope is for small businesses to do two things: set up a new business just outside of Seattle, advising all customers that you are moving there, while temporarily keeping the in-Seattle office for salaried employees only, or shutting it down entirely.
If their minimum wage employees are willing to work at the new location they can keep their jobs, otherwise they will be laid off. And point the finger for the relocation and lost jobs at the city council.
If one or a dozen small businesses do this, the city council will shrug it off. However, if two, three or more dozen businesses do this, while also announcing how much revenue the city will be losing, eventually it is going to get through their thick skulls, except for the socialist.
Then, as a Parthian shot, all those small businesses join together to support the candidacy of the opponents of the city council in the next election. Perhaps even running some pro-business small business owners as candidates.
From the article: “Newly elected socialist council member Kshama Sawant argued at one public hearing that, In order to be a franchisee, you have to be very, very wealthy. But Kathy Lyons is a franchisee who says shes not close to being rich. She took out a small business loan of $235,000 using her home mortgage as collateral to launch a BrightStar franchise. She invested her life savings of $200,000 into the home health care company and is now afraid she could lose it all.”
To your point, these idiot socialists have no clue how basic economics works, and should NEVER be elected to public office.
I wonder what the monthly dues are to belong to that union...
If I owned one of those Indie Coffee Shops, I would raise the Wage and confiscate all the Tips to help pay for it.
When the Staff complains, I’d tell them to take it up with the City Council, who must be way overpaid if they are getting anything near $15 an Hour themselves.
Most of the folks in Washington have never run a business or had to make payroll and since most Gov. run programs are non-profit there is no incentive to learn.
As long as we have representitives who have zero comprehension about managing a budget or taking responsibility for failure we are doomed.
“Seattle has a very large number of indie coffee shops and Im betting the baristas arent making any $15/hr. Well, they will now. Those of them that are working.”
99.9% of those coffee shops have 100% automated espresso makers that require no more than punching in the number of shots and pushing the “START” button, not too much more difficult to operate than the self-serve soda-pop machines all fast food outfits have.
My prediction is that in short order the espresso makers will be moved from behind the counter to the FRONT of the counter where customers make their own espresso drinks, completely eliminating the need for a “barrista” to push the “START” button for you.
It’s only one more step for the espresso machine makers to add a credit-card swipe unit that auto-charges you for the espresso you make based on the number of shots you dial in.
At that point, the only need for an employee is to load the beans in the hoppers. Big enough hoppers, and that need be done only once a day. At that point, many of these shops can then just be converted into totally self-serve kiosks.
Once this equipment gets built, installed and self-serve shown to be successful, the rest of the country will quickly move in that same direction.
Don’t challenge it.
Close down and leave, publicly telling all your soon to be ex-employees why.
Corp - 1 emp $ 350.00 $ 50.00 $ 20.00 $ 21.00 $ 441.00
Corp 2-5 emp $ 395.00 $ 50.00 $ 20.00 $ 23.25 $ 488.25
Corp 6-10 emp $ 430.00 $ 50.00 $ 20.00 $ 25.00 $ 525.00
Corp 11-15 emp $ 475.00 $ 50.00 $ 20.00 $ 27.25 $ 572.25
Corp 16-25 emp $ 505.00 $ 50.00 $ 20.00 $ 28.75 $ 603.75
Corp 26-35 emp $ 540.00 $ 50.00 $ 20.00 $ 30.50 $ 640.50
Corp 36-49 emp $ 580.00 $ 50.00 $ 20.00 $ 32.50 $ 682.50
Corp 50-75 emp $ 790.00 $ 50.00 $ 20.00 $ 43.00 $ 903.00
Corp 76-149 emp $ 970.00 $ 50.00 $ 20.00 $ 52.00 $ 1,092.00
Corp 150-199 emp $ 1,530.00 $ 50.00 $ 20.00 $ 80.00 $ 1,680.00
Corp 200-300 emp $ 2,270.00 $ 50.00 $ 20.00 $ 117.00 $ 2,457.00
Corp 300+ emp $ 3,010.00 $ 50.00 $ 20.00 $ 154.00 $ 3,234.00
The International Franchise Association's fees are as follows:
SUBSCRIBER MEMBERSHIP (INDIVIDUAL) □ Single-unit franchisee 1 unit DUES RATE US $100.00 □
Multi-unit franchisee 2-9 units DUES RATE US $250.00 □
Multi-unit franchisee; Area Developer - 10 or more units DUES RATE US $ 500.00 □
Area Representative; Development Agent (U.S.) Must have agreement in good standing with franchisor DUES RATE US $ 500.00 □
Master Franchisee; Regional Developer; Development Agent (International) Must have agreement in good standing with franchisor DUES RATE US $ 500.00
Looks like a pretty decent deal to me...