Seattle’s New Minimum Wage Among Highest in Big Cities, Businesses Closing [Video]

The Bebop Waffle Shop, a beloved café in West Seattle, closed its doors just days after Seattle’s new minimum wage of $20.76 per hour took effect Wednesday.

Bebop is one of several businesses in Seattle facing closure or financial strain as the city implements one of the nation’s highest wage laws. The new policy eliminates tiered wages and tip credits, creating uniform pay requirements for all employers.

Why It Matters

For tipped employees, the uniform wage eliminates previous credits that allowed small businesses to count tips toward total compensation. Business owners argue that this approach places an unsustainable burden on their operations, forcing many to make tough decisions about raising prices, reducing staff or closing entirely.

The new law, aimed at addressing income inequality, has generated debate over how cities can balance fair wages for workers with the financial realities of running small businesses.

What To Know

Under Seattle’s previous wage system, smaller businesses could pay …