2023 has been nothing short of a rollercoaster ride for many of us. Employers and workers have hung on for dear life as the service industry, in Seattle and beyond, has been thrown into hard curves, breathless dips, and steep climbs.
Let’s take a look!
Wage Hikes
The push for more wage hikes started right out of the gate in January as the SEIU commenced its assault on tipped workers in Washington, DC, with the DC tip credit repeal efforts. Initiative 82 prevailed over a Covid-weary industry, and almost immediately, workers were thrown into the spin cycle as most employers went directly to service charges to help offset the new wage hike.
DC wasn’t the only place seeing wage hikes disrupt the service industry. Twenty-one states were affected at the first of the year, with several other efforts to hike the wage dotting the map and the 2023 calendar. King County Council member Girmay Zahilay proposed a minimum wage hike for Unincorporated King County in Washington state. Zahilay is asking for a minimum wage of $19 an hour. The council vote on this measure is delayed until 2024, while Kent has put a vote for a minimum wage hike on the ballot next year.
Pay Model Mayhem
Workers jumping back into the industry were met with a few surprises with the new pay models being offered. This was especially true from our downtown Seattle operators. Patty Murray’s tip pool crafted in 2018 hit the ground running, with many employers adopting the previously illegal compensation model in 2023. While labor groups boasted the Patty Murray pool as a way to create an equitable work environment, tipped workers saw their incomes confiscated and redistributed to non-tipped employees like cooks and dishwashers. In some cases, BOH employees' base wages were regressed to what they made on average in 2016, with now the promise of it being supplemented by tips.
Beyond the tip pools, some employers are now eliminating tipping altogether and replacing it with a flat, stagnant wage.
These pay models fall into the category of negative consequences from being on the minimum wage hike scale without a tip credit. In any case, both FOH and BOH workers are making less money under these pay models.
Julie Su
It is no secret that the Biden Administration works very hard to benefit public sector unions like the SEIU. Within a month of being elected, the Biden Administration rearranged the National Labor Relations Board by handing it over to union power. Biden also introduced the PRO-Act, which, on its face, suggests it strengthens workers' ability to collectively bargain. 2023 was the same as the Biden Administration, which aggressively tried to appoint Julie Su as the federal head of the Department of Labor. Su is a vocal supporter of the SEIU’s One Fair Wage. She has expressed her determination to reclassify tipped service industry workers if she becomes the next official Secretary of Labor. Su’s appointment is currently in limbo despite Wikipedia's reference to her as the acting Secretary.
Closure City
Inflation, along with increases in interest rates and wage hikes, have taken their toll on small businesses. Restaurant closures in 2023 are unprecedented. With little help from our federal, state, or municipal government, more operators are turning over the open sign and posting “thank you to the community” letters by the dozens. As of today, there are too many closures to list here.
Notables
Metropolitan Grill celebrates 40 years.
In Tribute
The Seattle industry lost some big names and prominent personalities this year. Murray and Thierry were giants to us. All impacted our lives as their efforts supported us in hospitality education, entrepreneurship, and work. Read an excellent tribute here.
Labor Wars Continue
Lawsuits abound as more restaurants are accused of not allowing breaks and wage theft. Canlis is dealing with its first lawsuit brought by two former employees while Skillet gets hit again by the Office of Labor Standards. Following best practices is advised, but it may not keep an employer from the grips of a lawsuit. The unionization effort at Starbucks is an example of what was considered a good employer being sabotaged by labor efforts by disruption and demonization of the company to make it easier to unionize the workers there. We see these lawsuits in kind with those measures.
Moving Forward
The FSWA is moving forward in 2024, working with legislators regarding wages and tipping. We will be bringing a new focus on safety, transportation, and housing and how those issues affect service industry workers. Our goal is to positively impact our futures by illuminating what industry workers in our state are experiencing under the policies that guide us. Get ready to hear us in the new year!
Happiest of Holidays to all of you from us at the Full Service Workers Alliance!