‘It’s been a challenge’: Business owners assess Bellingham’s new minimum wage
AI-generated summary reviewed by our newsroom.
- Bellingham raised minimum wage to $18.66, increasing costs for small businesses.
- Owners cite tight margins, payroll taxes, and tariffs as compounding pressures.
- Future wage hikes tied to state rates could force cuts, closures, or price increases.
Bellingham’s minimum wage increased by $1 this month, reaching $18.66 and impacting local businesses.
As the idea of a higher minimum wage helps offset the rising costs of housing, groceries, school and everyday expenses, it can put small business owners in a corner.
“Minimum wage is such a tricky topic,”Anna Marie Adams, owner of Hela Provisions, told The Herald. “Yes, we want to provide a living wage, and it is also really hard on small businesses. With everything else going up due to the current administration it will be difficult not to raise prices to make up for the tariffs and the minimum wage increase.”
“The other part of this equation is the payroll taxes,” Adams said. “With the increase in wages, the taxes have also gone up. Unless you’ve been an employer I don’t think most people think about the total cost of wages plus taxes. Margins are small for small businesses, and this increase is tough in a number of ways.”
Melissa Hatcher, owner of Adored Boutique, said her ability to put profits back into her business also will suffer.
“While we support fair wages, the increase adds financial pressure to small businesses like ours,” Hatcher said. “It reduces our flexibility with payroll, which may affect how many hours we can offer or how we schedule staff. Over time, this could affect our overall revenue and how we reinvest in the business.”
Adored Boutique currently has a small team of part-time employees who are paid at or above minimum wage.
“We’re doing everything we can to avoid letting any employees go. We’re committed to keeping our pricing as fair as possible while ensuring the long-term sustainability of the boutique,” Hatcher said. “Both the minimum wage hike and tariff increases have made it more expensive to operate overall. The cost of goods has gone up, and our margins have tightened. As a new small business owner, it’s been a challenge to absorb these changes while maintaining the quality and experience our customers expect. That said, we remain committed to adapting thoughtfully and continuing to serve our community.”
At Third Planet Boutique, owner Erike Millage currently does not have any minimum wage employees on staff but is worried about sustaining business if minimum wage continues to increase as planned.
“Looking ahead, we are worried about House Bill 1764, which proposes an increase in minimum wage to $25/hr by 2031. Since Bellingham is $2/hr above Washington state minimum wage, this would make our minimum wage $27/hr, which would currently be impossible for our business. To continue to sustain the increases in wages, we will need to see an increase in revenue, which is something that is not looking good considering the tariff increases and the current state of our government. We have received notices of imminent increases in our wholesale cost from numerous vendors, and just finished a big push of orders to get as much inventory in before they go into effect so that we can keep our prices the same for the time being,” Millage said.
Bellingham is one of only eight areas in the state to have a higher minimum wage than the state minimum. Tukwila has the highest minimum wage in the state at $21.10 per hour, according to the Washington State Department of Labor & Industries.
They are:
▪ Bellingham: $18.66/hour
▪ Burien : $21.16/hour for employers with more than 500 employees, and $20.16/hour for employers with 21-499 employees. Employers with 20 or less employees are not covered.
▪ Everett : Effective July 1, 2025. $20.24/hour for employers with more than 500 employees in Washington and $18.24 for employers with between 15 and 500 employees. Employers with 14 or fewer employees are not affected.
▪ King County (unincorporated areas) : $20.29/hour for employers with more than 500 employers, $18.29/hour for employers with 15-500 employees, and $17.29 for employers with less than 15 employees and less than $2 million in gross revenue.
▪ Renton : $20.90/hour for employers with 501 or more employees and $18.90/hour for employers with 15-500 employees from Jan. 1, 2025, to June 30, 2025, and $19.90 from July 1, 2025 to Dec. 31, 2025. Employers with 14 or less employees are are not covered.
▪ SeaTac : $20.17/hour for employers in hospitality and transportation industries.
▪ Seattle : $20.76/hour
▪ Tukwila : $21.10/hour for employers with more than 500 employees and $20.10/hour for employers with 15-500 employees or more than $2 million of annual gross revenue in Tukwila from Jan. 1 to June 30, 2025, then $21.10/hour from July 1 to Dec. 31, 2025. Does not apply to employers with 14 or less employees or have $2 million or less in gross revenue.
Bellingham will continue to raise minimum wage by $2 above Washington state’s each year, according to City of Bellingham municipal codes.
This story was originally published May 19, 2025 at 5:00 AM.
