HomeMy WebLinkAboutFIN 2025-03-24 Item 1C - Discussion - Minimum Wage ProgramCity of Tukwila
Thomas McLeod, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance & Governance Committee
FROM: Aaron BeMiller, Finance Director
BY: Julie Hatley, Senior Fiscal Coordinator — Minimum Wage Ordinance
CC: Thomas McLeod, Mayor
DATE: 3/24/2025
SUBJECT: 2024 Tukwila Labor Standards Year -End Review
ISSUE
Staff is reporting Tukwila Labor Standards 2024 year-end review.
BACKGROUND
On November 8, 2022, City of Tukwila voters overwhelmingly approved, at 82% to 18%,
Initiative Measure No. 1 concerning labor standards for certain employees.
The measure added Tukwila Municipal Code (TMC) Chapter 5.63 and TMC 5.04.113.
TMC 5.63 states the intent of the voter approved legislation is to establish fair labor
standards and protect worker rights by:
1) Ensuring the vast majority of employees in Tukwila receive a minimum wage
comparable to employers in SeaTac and Seattle;
2) Requiring covered employers to offer additional hours of work to qualified part-
time employees before hiring new employees to fill those hours;
3) Adopting enforcement requirements.
The main effect of TMC 5.63 is to ensure that, to the extent reasonably practicable, people
employed in Tukwila have good wages and access to sufficient hours of work.
In addition, Initiative Measure No. 1 assigned the City's Finance Department as the entity
responsible for ensuring compliance with the intent and requirements of TMC 5.63.
TMC 5.63 — also known as the Minimum Wage and Fair Access to Additional Hours of
Work Ordinance — went into effect July 1, 2023. Council subsequently approved hiring an
FTE Senior Fiscal Coordinator to develop and manage the program starting January 2024.
DISCUSSION
In 2024, staff was directed to identify and track annual compliance certifications, required
from employers covered by TMC 5.63, to build an accurate database for actionable insights
and inform decision -making for resource allocation and capacity planning.
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INFORMATIONAL MEMO
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To achieve this goal, staff continues to strategically research City businesses to identify
each covered employer and their payroll or human resources contact information to
establish contact, provide education, and request certification form.
In 2024, 5% of the 2,400 estimated employers in Tukwila certified their compliance. As a
result of database building efforts in 2024 and Q1 2025, 9% of possible annual compliance
certifications have been received in 2025. This is an increase of 4% compared to 2024 in
Q1 2025 alone.
On July 1, 2025, the Ordinance will have been in effect for two years. As the database of
employers covered by the Ordinance grows, a pattern of non -compliant employers will be
assessed. Staff will work with City Leadership and City Attorney for interpretation of TMC
5.63 enforcement requirements for repeated, intentional non -compliant employers.
The attached chart provides a comparison of Tukwila's, Renton's, and SeaTac's minimum
wage programs.
RECOMMENDATION
Information Only.
https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Finance/FINAL DRAFT_3-24-2025_Minimum Wage Ordinance_F&G
Presentation.docx
44
Attachment to Labor Standards 3/24/2025 Finance & Governance Informational Memorandum
Comparison Chart of Tukwila, Renton, and SeaTac Minimum Wage Programs
Comparisons
City of Renton
City of SeaTac
City of Tukwila
Labor Standards Name
Labor Standards for Certain Employees
EmploymentStandards Ordinance
Labor Standards for Certain Employees
(aka Minimum Wage & Fair Access to
Additional Hours of Work Ordinance)
Became Law By
Voter Initiative - Measure No. 23-02
City Council - Proposition 1
Voter Initiative - Measure No. 1
Year Effective
2024
2014
2023
Focus
All Large Employers, Mid -Size Employers,
and certain Franchises.
Includes FTE, part-time, and temporary.
Certain Hospitality Employers
&Transportation Employers
(larger employers meeting
requirements)
All Large Employers, Mid -Size Employers,
and certain Franchises.
Includes FTE, part-time, and temporary.
2025 Minimum Wage
$20.90 Large Employers
$18.90. Mid -Size Employers
(increases to $19.90 July 1, 2025)
$20.17
$21.10 Large Employers
$20.10 Mid -Size Employers
(until phase -in period ends July 1, 2025)
Estimated Employers
Covered by Ordinance
2,469
72
2,400
Land Area in Square Miles
23.5
10
9.6
Estimated Resident Total
108,800
31,799
21,780
Requires Annual
Compliance Certifications
Yes. At in-house City license renewal.
No
Yes. January 31stdeadline.
Complaint Investigations
Performed In -House
No (L&I)
No (L&I)
Yes
Full Customer Service
Offered
No
City Hall phone number and
staff email on website.
Employers:
Refer employers to
consult an attorney.
Employees:
Ordinance same as Tukwila, but
refer complainants to L&I.
Lack adequate staff to do more.
No
Feedback button on web page.
Employers:
Refer employers to
consult an attorney.
Employees:
Asks for Claim Form, but refer
complainants to L&I.
Lack adequate staff to do more.
Yes
Staff direct phone number and email on
website for daily support.
Building employer database.
Comprehensive Administrative Rule
w/FAQs & Examples.
Employers:
Relationship building with businesses
& associations (host Q&As).
(Rotary, Washington RetailAssociation)
Education & Communication.
Web portalfor compliance forms.
Employees:
Community Outreach.
City Complaint Form w/possible
City Attorney Investigation.
Source Citations:
City of Renton website and their Tax & Licensing Manager
City of SeaTac website and their Finance Director
City of Tukwila website and their Senior Fiscal Coordinator
United States Census
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