Teen Wage Bills Could Help Washington Small Businesses

Date: March 13, 2015

Plans face uphill battle in House.

Two bills introduced in the legislature this session could provide
some relief for Washington small businesses while creating more entry-level
opportunities for teens across the state.

The teen summer wage bill, SB 5421, would give employers the
option to pay 14- to 19-year-olds working seasonal or temporary jobs during the
summer months the federal minimum wage rate of $7.25 per hour, more than $2
below the state’s minimum wage of $9.47 an hour. 

Under SB 5422, known as the teen training wage bill, employers
would be allowed to pay 16- to 19-year-olds 85 percent of the state or federal
minimum wage—whichever is higher—during their job training. That comes to $8.05
an hour, which is still higher than the federal minimum wage.

In a state with disproportionately high teen unemployment, at
more than 20 percent, the bills could work to cut that number by encouraging
employers to hire and train entry-level workers at a lower expense, says NFIB
Washington State Director Patrick Connor.

“What hurts a young worker more, a wage reflecting the value he
or she brings to the job, or no job at all? Right now, far too few employment
opportunities are available to teens because the state’s minimum wage is too
high for on-the-job training,” Connor says. “This lack of early work experience
leads to fewer job opportunities and lower wages in the future.”

Idaho, with a teen unemployment much lower than Washington’s,
allows a teen training wage bill, and ended last year with an even lower
unemployment rate. NFIB supports a teen training wage that reflects the skills
and productivity of young workers, and testified in favor of both bills during
public hearings, Connor says.

It’s likely that one or both bills will pass the state Senate,
though they’re likely to run into more opposition in the Democrat-led state
House.  

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