$15 Minimum Wage Challenge Turned Away by State Supreme Court
The Washington State Supreme Court has rejected a challenge to Seattle's $15 minimum wage law. The challenge was brought by the International Franchise Association and five fast-food franchises, saying the law treats them like large multi-state corporations instead of locally-owned chains.
The City of Seattle law gives large companies based outside the state that employ over 500 people only three years to implement the $15 minimum wage law, but gives smaller, local businesses who employ less than 500 total seven years.
These fast-food franchise owners argued despite being 'part' of a national chain, such as McDonald's, Burger King or KFC, they are locally owned, controlled and responsible for their own financial matters. No specific franchises were mentioned in the case, but it did involve five major brands.
Just like in Tri-Cities, the local fast food chains are controlled by franchise owners, who are 100% responsible for their own profit or loss. Being franchised, said the owners, does NOT make them part of a large company like a Walmart.
However, the State Supreme Court rejected their challenge without comment. This sets an important precedent for other communities where locally-owned and controlled national franchises will now have far less time to prepare for and implement the $15 minimum wage.