Provide an overview of recent
Provide an overview of recent changes in minimum wages inSeattle area and discuss how the minimum wage will influence the(1) restaurant business, (2) employee performance, and (3) guestservice
Answer:
The changes in minimum wages in the Seattle area took place whena law was passed for increasing it for large employers from $9.47in Aril 2015 to $11 per hour. This further increased to $13 perhour in 2016 and again to $15 by the year 2021. This increase inwage has been a point of discussion due to the effects it has onthe restaurant business in Seattle, on the employee performance andguest service.
The hike in minimum wages had less impact on the restaurantclosures of Seattle but it increased prices and led to shorterworkdays. The restaurant business owners of the area thought ofmoving their shops outside city limits after the passing of theminimum wage law, but only a few of them did it. Furthermore,employee work hours have been reduced with a rise in prices afterthe increase in wages. Besides, restaurant jobs have also increasedsince 2015 and workers have been paid more. With the increase inminimum wages and a reduction in work hours, employees with the jobwould be satisfied, which in turn would increase their productivityand performance. However, the rise in minimum wages also led manyworkers to lose their jobs as employers would now hire fewer peoplewith higher wages. This, in turn, led to unemployment increase inthe area, which increased the work hours of the existing employees.Besides, with restaurants paying higher wages, the number ofemployees hired would be reduced. This would overburden theemployees with the existing work as the number of people doing thejob decreases. Thus, the guests would be served a fewer number ofemployees, which could hamper the service in the restaurants.
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