Today, July 1, 2025, Everett’s minimum wage will increase, a move driven by the voter-approved Initiative Measure 24-01, passed with 59% support in November 2024. The initiative cost was primarily funded by labor Unions. Large employers (over 500 employees) must pay $20.24 per hour, while mid-sized businesses (15-500 employees) will pay $18.24. Small businesses with fewer than 15 employees or under $2 million in annual revenue remain at the state’s $16.66 minimum wage. This makes Everett the seventh Washington city to exceed the state’s minimum wage, following Bellingham’s recent jump to $18.66.
For large employers, the $20.24 rate may be absorbable, but mid-sized businesses, particularly in retail and hospitality, face tougher choices. Higher labor costs will lead to reduced hours, layoffs, or price increases, squeezing consumers already grappling with high costs of goods and services. The exemption for small businesses is a smart carve-out, but the threshold (under 15 employees or $2 million in revenue) may still burden modest operations. The provision barring tips from counting toward the minimum wage, while worker-friendly, could strain tipped industries, potentially reducing service jobs.
Everett’s initiative mirrors trends in Seattle, Renton, and Tukwila, where local wage laws have increased those jurisdictions wage past the state minimum. Seattle’s experience after increasing minimum wage shows mixed results. A 2021 University of Washington study found its $15 minimum wage did little to curb income inequality, with some low-wage workers facing reduced hours. Everett must monitor these outcomes to avoid similar pitfalls.
The Washington Policy Center advocates for market-driven solutions over mandates. While Everett’s wage hike reflects voter will, policymakers should pair it with tax relief or regulatory flexibility to ease the burden on businesses. Balancing worker prosperity with economic vitality is key to ensuring Everett thrives.
