Judge Refuses to Block Part of Seattle’s $15 Minimum Wage Law
If you own a McDonalds, Burger King, KFC or any other franchise inside the Seattle city limits, your wallet just took a hit.
A Federal judge ruled Tuesday he will not block part of the $15 minimum wage law that goes into effect April 1st.
As part of a tiered approach, over the next couple of years, businesses must raise their minimum wage to eventually arrive at $15-per-hour.
Part of the law stipulates that local franchises affiliated with large corporations with over 500 workers are considered "big businesses" which much implement the wage changes much faster than locally-based "mom-and-pop" stores.
Representatives of the International Franchise Association (IFA) said this is going to hurt local business owners. Seattle, and the rest of the state, are full of locally based businessmen and women who own anywhere from 2, 5, 10 (or even more) McDonalds, Kentucky Fried Chickens, Taco Bells and numerous other franchised businesses.
The IFA had asked the judge to block, or at least delay, the earlier deadlines to allow these business owners more time to prepare financially.
While they are part of these international corporations, they don't receive direct financial subsidies. While they receive considerable advertising and logistical support, they're not propped up financially. The IFA says these local owner-franchisees are completely on their own when it comes to making their business profitable and working. Nobody at Burger King Corporate is cutting monthly checks to keep franchises open.
By April 1st, these owners will have to raise the wage to at least $11-per-hour, while all other non-franchise businesses must go to $10.
The IFA says at least 600 franchises inside the city limits will be affected by the ruling.