Everett voters appear to be on track to approve a new minimum wage of $20.24 per hour, nearly four dollars higher than the state minimum wage.
Initiative 24-01 was passing with 58% of the vote Tuesday night. If it succeeds, large employers in Everett with over 500 employees will begin paying the $20.24 minimum wage beginning July 1, 2025. For companies with 15-500 employees, the minimum wage will be phased in, beginning at $18.24 on July 1 and reaching the same rate paid by large employers by 2027, which will be adjusted annually for inflation.
The measure does not apply to businesses with fewer than 15 employees.
Supporters of the Everett Deserves a Raise campaign argued the higher wage is necessary to offset rising costs of rent, groceries, gas and other life expenses that are contributing to residents getting displaced from the city. The measure was backed by unions including UFCW 3000, the Snohomish & Island County Labor Council and the Public School Employees of Washington.
Everett voters were tasked with choosing between two similar and competing minimum wage measures this election. Initiative 24-02, known as Raise the Wage Responsibly, also would have increased the minimum wage to $20.24 over time, but allowed businesses to count tips, health care and retirement contributions toward a worker’s minimum wage.
The backers of this alternative measure, including the Washington Hospitality Association, argued the tipped wage credit and other exceptions would allow higher pay for workers without hurting businesses also feeling the impact of inflation.
Initiative 24-02 was losing by 59% after the first ballot count Tuesday night. Had both measures passed, the one with more Yes votes would have superseded the other, according to the Everett Herald.
Tipped wage credits were a flashpoint issue in Seattle recently. As part of its decade-long phase-in of its highest-in-the-nation minimum wage law in 2015, Seattle allowed businesses like restaurants and coffee shops to count tips toward workers’ minimum wage.
That exemption is set to expire at the start of 2025. Councilmember Joy Hollingsworth introduced a bill in late July to keep the tipped wage credit in place in response to restaurant and other business owners’ concerns about the ongoing economic impact of the pandemic. Hollingsworth withdrew her bill one week later after facing swift blowback from labor leaders and workers.
In 2022, Tukwila voters approved a measure to raise the minimum wage — now $20.29 an hour for large employers. Renton voters approved a measure in February 2024 to match neighboring Tukwila’s new wage. Everett would join these cities as having among the highest minimum wages in the country, according to the Economic Policy Institute.
This article was updated to clarify how Everett's minimum wage would be phased in for medium-sized employers.