by Jack Mayne With the $15 minimum wage already law in SeaTac and recently in Seattle, the first of what promises to be many lawsuits was filed in Seattle federal court on Thursday (June 12). There are strong suggestions that a version of the same localized minimum wage law is under consideration by some members of the Burien City Council, although no specific proposals have been forthcoming. The International Franchise Association (IFA) filed the suit that seeks to block law passed last week and signed by Mayor Ed Murray. The IFA suit seeks to block the Seattle law, alleging â€œthe new law illegally discriminates against franchisees and improperly treats them not as the small, locally-owned businesses they are, but as large, national companies,â€ according to a news release from the Washington, D.C. based association. The Seattle ordinance requires large businesses, which are defined as those with â€œmore than 500 employees,â€ to raise the minimum wage they pay their employees to $15-an-hour over three years beginning on April 1, 2015. The IFA notes that smaller businesses have an extra four years, or a total of seven years, to phase in the wage increase. But the IFA suit says this â€œunfairly requires Seattle’s 600 franchisees, who own 1,700 franchise locations and employ 19,000 workers, to meet the three year deadline for large businesses simply because they operate as part of a franchise network.â€ That means Seattle has defied â€œyears of legal precedent clearly defining a franchisee as an independent local business owner who operates separately from the corporation that provides brand and marketing materials,â€ thus unfairly treating franchisee workers. â€œWe are not seeking special treatment for franchisees, we are just seeking equal treatment. The city’s minimum wage statute arbitrarily and illegally discriminates against franchisees and significantly increases their labor costs in ways that will harm their businesses, employees, consumers and Seattle’s economy,” said Steve Caldeira, IFA president & CEO.”]]>
Senior Reporter Jack Mayne passed away in December, 2021. In his honor we have created the Jack Mayne Journalism Scholarship. More by Jack Mayne
Burien is not Seattle. Wa already has the highest minimum wage in the country. Boosting the minimum wage to $15 is a really bad idea. It sounds good but the reality is it will make it harder for business’s to make a profit. Also if you don’t think that this will increase goods and services for the rest of us then you are very naive.
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