The new year continues to bring bad news for workers and consumers thanks to passage of Initiative 1433.  First was the news that day care centers in Spokane have been forced to increase child care rates by up to $150 per month to offset the higher minimum wage mandated by I-1433.

Now the historic Davenport Hotel in Spokane has announced it is laying off 50 workers as a direct result of the higher minimum wage they must pay. 

The state’s minimum wage jumped from $9.47 last year to $11 this year, with more hikes coming in 2018 ($11.50), 2019 ($12) and 2020, when the state wage will be fully phased in at $13.50 per hour.  After that the wage will increase annually according to inflation.

“It’s such a large expense to a business…unfortunately businesses can’t just absorb that,” lamented Matt Jensen, corporate director of sales and marketing for the Davenport.

The Davenport says the higher wage will cost more than $3 million this year alone. 

Jensen says the higher cost is forcing the hotel to “look at our business practices a different way.”

In addition to cutting 50 workers, the Davenport says it will eliminate its nightly turndown service and its famous peanut brittle that used to be a complimentary part with that service.  The hotel’s restaurant hostess staff will also be reduced in favor of open seating most of the time.  And prices in the hotel’s restaurants will increase from 10-20%.

The Hotel Lusso in Spokane is also laying off workers as a result of I-1433.

The television station reporting this bad news appropriately called their story the “Painful reality of the minimum wage.”  It is painful for the workers who will now earn zero wage.  It is painful for the customers who will pay more for reduced services.  It is also entirely predictable.