The ramifications of the $15 minimum wage are beyond what many may know. Herewith is a trip through the subject as put forth by our September 29th speaker, Bob Donegan, CEO of Ivar’s:
- What wage to start at–immediate or phase in?
- Over what period to phase in?
- What is included in income, i.e., tips, bonuses, health care benefits?
- Determined by size of organization or the sector?
- How is law to be enforced?
Principles agreed upon:
- All employees to be treated the same
- All compensation that appears on W-2 has to be included
- The training phase for high school graduates, ex-convicts, and immigrants begins with a phase-in wage to work up to $15/hour.
- If an employer has more than 500 personnel, this business is a large employer, which must get to the wage in 3 years. If health care insurance is included, 4 years. Tips must be included in the case of small employers.
The question arises as to whether to increase revenue by adding a service charge or raising item prices? The solutions range from one of these to another in various restaurants. The Ivar’s sites will go to $15 over 3 years…If a service charge occurs, it must be shown on the menu what it is and where it is to go. If a price rise is made, this is not necessary. No tips are expected at Ivar’s. But 40% of patrons leave tips, over and above the price rise. Parity between the out-front workers and the kitchen staff has had to be achieved.
The results to date:
- –People have bought fewer items.
- –Customer accounts and sales are down.
- –90% of employers raised wages.
- –62% of employers raised prices.
- –30% laid off workers.
- –30 added a service charge.
Primary factor that has raised employment is the vigorous economy:
- Many high rise cranes…
- Record year for cruises
- Hotel occupancy is over 90%
- Unemployment is less than 3%.
Obviously, the economy is driving more changes than the minimum wage law. A city law requires that all employees must be given a notice of two weeks as to what their schedules will be. Initiatives regarding paid time off and gender equality will probably pass.
August 11th our speaker was Emma Le Dû redux and our hardiest perennial, TINFA. (Technology and Information for all).
This year’s Relay for Life: Pam Mushen whipped around the course to complete the Survivor’s Lap. She then helped David complete the Caregiver’s Lap.
President Jim and Alan H. had a good time!
On Saturday, August 13, our club will be participating in the American Cancer Society’s Relay for Life walk in Capitol Hill. The walk will begin at 10am in Cal Anderson Park with the Survivor’s Lap and will end at 10pm with a Luminaria Ceremony to honor and remember cancer survivors and those we have lost to cancer. If you would like to join us for our walk or donate to the American Cancer Society, you can do so at this 
DG Bo Darling, of hydroplane fame, used boat racing to exemplify the teamwork ethic which he champions. This led into his discourse on fellowship, membership, and continuity.
