The Fairness of Seattle's Minimum Wage Law for Franchises

Is it fair for the political class to forcefully override the decisions of millions of workers and employers engaging in peaceful and voluntary contracting without clear evidence that such policies would ultimately result in net beneficial effects for society? The answer is a resounding no.

Legislative Impact

The law in Seattle mandates a 15 minimum wage, effectively taxing business owners. To ease the financial burden on smaller businesses with fewer than 500 employees, the city provides them with 4 years to comply. However, franchise owners, despite often being small business owners, are given just 2 years to meet the 15/hour wage mandate. This discrepancy highlights a significant flaw in the legislative approach.

Legislating Fairness

Expect trouble whenever governments start legislating fairness. In Seattle, the city fathers and mothers are attempting to legislate away income inequality. While the intentions behind the law are noble, the reality is harsher. The beneficiaries of this law will be corporate-run restaurants and shops such as Olive Garden and Walmart who can absorb the financial blow much better than locally owned eateries and boutiques.

Details and Perspectives

Franchise owners are typically small business owners who rely solely on the profits from their individual business. They do not receive a share of profits from other franchises. To mandate a different minimum wage for franchises versus other small businesses is nonsensical. Franchises often receive marketing support from corporate headquarters, which they pay for. Treating a small business owner like a massive corporation simply because they own a franchise is not only unfair but, in my opinion, illegal.

Conclusion

The Seattle minimum wage law, as it pertains to franchises, raises serious questions about fairness and legality. It is imperative for policymakers to consider the well-being of both small business owners and the employees they serve. Legislation should be based on evidence and serve the best interests of all stakeholders. Until then, the current disparity will continue to create friction and unfairness in the business community.