A proposal on the November ballot in SeaTac would establish a $15 minimum wage and paid sick leave benefits, and impose restrictions on employers' labor practices. In a new special report, we consider the economic effects of Proposition 1. Our five main findings are:
- Approximately 5 percent of low wage jobs will be lost. Another 5-10 percent of affected workers will be replaced by more experienced and educated employees.
- Business not subject to Prop.1 will feel pressure to increase compensation.
- Tax revenues will decline and, over time, grow more slowly than otherwise anticipated. Audit, oversight and enforcement provisions will increase city costs.
- SeaTac residents represent fewer than 10 percent of the workforce covered by Prop. 1 and the city will receive no economic benefit from the higher compensation.
- Prop. 1 imposes extraordinary compliance and equity challenges for all businesses, but especially those with substantial operations outside the city.