Question

Provide an overview of recent changes in minimum wages in Seattle area and discuss how the minimum wage will influence the (1) restaurant business, (2) employee performance, and (3) guest service

Answer 1

The changes in minimum wages in the Seattle area took place when a law was passed for increasing it for large employers from $9.47 in Aril 2015 to $11 per hour. This further increased to $13 per hour in 2016 and again to $15 by the year 2021. This increase in wage has been a point of discussion due to the effects it has on the restaurant business in Seattle, on the employee performance and guest service.

The hike in minimum wages had less impact on the restaurant closures of Seattle but it increased prices and led to shorter workdays. The restaurant business owners of the area thought of moving their shops outside city limits after the passing of the minimum wage law, but only a few of them did it. Furthermore, employee work hours have been reduced with a rise in prices after the increase in wages. Besides, restaurant jobs have also increased since 2015 and workers have been paid more. With the increase in minimum wages and a reduction in work hours, employees with the job would be satisfied, which in turn would increase their productivity and performance. However, the rise in minimum wages also led many workers to lose their jobs as employers would now hire fewer people with higher wages. This, in turn, led to unemployment increase in the area, which increased the work hours of the existing employees. Besides, with restaurants paying higher wages, the number of employees hired would be reduced. This would overburden the employees with the existing work as the number of people doing the job decreases. Thus, the guests would be served a fewer number of employees, which could hamper the service in the restaurants.

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